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94th Congress 
2d Session 



COMMITTEE PRINT 



IMPLEMENTATION OF RECOMMENDATIONS 
OF THE WORLD FOOD CONFERENCE 



A REPORT TO THE CON© 

SUBMITTED BY THE \ 

AGENCY FOR \ - 
INTERNATIONAL DEVELOP? 




COMMITTEE ON 
INTERNATIONAL RELATIONS 
U.S. HOUSE OF REPRESENTATIVES 




DECEMBER 197G 



Printed for the use of the Committee on International Relations 



80-579 O 



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WASHINGTON : 197G 






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COMMITTEE OX INTERNATIONAL RELATIONS 



THOMAS E. MORGAN, 
CLEMENT J. ZABLOCKI. Wisconsin 
L. H. FOUNTAIN, North Carolina 
DANTE B. FASCELL, Florida 
CHARLES C. DIGGS, Jk.. Michigan 
ROBERT N. C. NIX. Pennsylvania 
DONALD M. ERASER. Minnesota 
BENJAMIN S. ROSENTHAL, New York 
LEE II. HAMILTON. Indiana 
LESTER L. WOLFF, New York 
JONATHAN B. BINGHAM, New York 
GUS YATKON. Pennsylvania 
ROY A. TAYLOR, North Carolina 
MICHAEL HARRINGTON, Massachusetts 
LEO J. RYAN. California 
DONALD W. RIEGLE, Jr., Michigan 
CARDISS COLLINS, Illinois 
STEPHEN J. SOLARZ, New York 
HELEN S. MEYNER, New Jersey 
DON HONKER. Washington 
GERRY E. STUDDS, Massachusetts 



Pennsylvania. Chairman 

WILLIAM S. BROOMFIELD, Michigan 

EDWARD J. DERWINSKI, Illinois 

PAUL ITNDLEY, Illinois 

JOHN II. BUCHANAN, Jr., Albama 

J. HERBERT BURKE. Florida 

PIERRE S. du PONT, Delaware 

CHARLES W. WHALEN, Jr., Ohio 

EDWARD G. BIESTER. Jr., Pennsylvania 

LARRY WINN. Jr.. Kansas 

BENJAMIN A. OILMAN. New York 

TENNYSON GUYER, Ohio 

ROBERT J. LAGOMARSINO, California 



John J. Brady, Jr.. Chief of Staff 
LEW GDLICK, Staff Consultant 



(II) 



FOREWORD 



U.S. House of Representatives, 
Committee ox International Relations, 

Washington, D.C. y December 31, 1976. 
This report has been submitted to the Congress by the Agency for 
International Development pursuant to section 213 of the Interna- 
tional Food and Development Assistance Act of 1975 (Public Law 
94-161) . Section 213 states : 

The Congress calls upon the President to strengthen the 
efforts of the United States to carry out the recommenda- 
tions of the World Food Conference. The President shall sub- 
mit a detailed report to the Congress not later than November 
1976 with respect to the steps he has taken to carry out the 
recommendations of the World Food Conference, including 
steps to fulfill the commitment of the United States and to en- 
courage other nations to increase their participation in efforts 
to improve the food security of the poorest portion of the 
world's population. 

The report is being published by the International Relations Com- 
mittee, in view of its legislative and oversight responsibilities in this 
field, as a public service for those interested in steps taken by the 
United States to carry out the recommendations of the World Food 
Conference. 

Thomas E. Morgan, Chai?"man. 

(in) 



Digitized by the Internet Archive 
in 2013 



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CONTENTS 



Page 

Foreword in 

Summary 1 

Efforts to increase world food production 4 

Emphasis on the small fanner and rural poor 8 

Nutrition 12 

Balance between food and population 14 

Women and food 15 

Food aid 16 

Food security 18 

IFAD 19 

ANNEX 

World Food Conference resolutions : 

Resolution I : Objectives and strategies of food production 22 

Resolution II : Priorities for agricultural and rural development 24 

Resolution III : Fertilizers 26 

Resolution IV : Food and agricultural research, extension and train- 
ing 29 

Resolution V : Policies and measures to improve nutrition 34 

Resolution VI : World soil charter and land capability assessment 45 

Resolution VII : Scientific water management : Irrigation, drainage, 

and flood control 46 

Resolution VIII: Women and food 48 

Resolution IX : Achievement of a desirable balance between popula- 
tion and food supply 51 

Resolution X : Pesticides 55 

Resolution XI : Programme for the control of African animal try- 
panosomiasis 57 

Resolution XII : Seed industry development 58 

Resolution XIII : International fund for agricultural development 

(IFAD) 59 

Resolution XIV: Reduction of military expenditures 65 

Resolution XV : Aid to victims of colonial wars in Africa 65 

Resolution XVI : Global information and early warning system on 

food and agriculture 66 

Resolution XVII : World food security 67 

Resolution XVIII : An improved policy for food aid 69 

Resolution XIX : International trade, stabilization and agricultural 

adjustment 73 

Resolution XX : Payment of expenses to representatives of national 

liberation movements 74 

Resolution XXI: Expression of thanks 74 

-Resolution XXII: Follow-up action 75 

(V) 



REPORT TO THE CONGRESS REGARDING IMPLEMENTATION 
OF RECOMMENDATIONS OF WORLD FOOD CONFERENCE 



Sec. 213 of the International Development and Food Assistance Act 
of 1975 calls for a report to the Congress detailing the steps taken 
by the United States to carry out the recommendations of the World 
Food Conference of 1974. The following report marking the second 
anniversary of the World Food Conference is submitted in response to 
this provision and updates a similar report submitted last year to 
the Senate Subcommittee on Foreign Agricultural Policy. The report 
reviews the major follow-up measures in the context of U.S. foreign 
assistance policy and the overall food policy strategy adopted by 
the World Food Conference. In the accompanying annex, substantive 
follow-up steps are discussed resolution by resolution. 

SUMMARY 

The World Food Conference was convened in the shadow of a succession 
of natural disasters, poor harvests and quantum jumps in the cost of 
petroleum based fertilizers, pesticides and other essential agri- 
cultural inputs. The combined effect of these events raised the 
spectre of an impending world-wide crisis and outright famine in the 
case of many of the world's poorer nations which had suffered crop 
failures and lacked the means to pay for a two-fold increase in the 
cost of imported food stuffs. However, the crisis atmosphere also 
helped'to galvanize world opinion and spurred ministerial-level dele- 
gates of 130 governments and representatives of several score of inter- 
national organizations and private agencies that participated in the 
World Food Conference to adopt a common set of goals and objectives 
for the elimination of hunger and malnutrition and to agree on a 
range of measures designed to carry out these objectives. 

The United States Government, through close coordination between its 
Executive and Legislative branches, played a leading role in structur- 
ing the Conference and in formulating the action program embodied in 
the series of resolutions the Conference adopted. The resolutions 
were adopted on the basis of a broad consensus by all of the delegates, 
despite the diversity of interests and views represented at the 
Conference. They reflect wide differences in approach and concerns 
ranging from lofty declarations on elimination of hunger within a 
decade, to special interest pleas to defray the travel expenses for 
national liberation movements. Some resolutions are very broad in 
scope, as in the case of agrarian reform and integrated rural develop- 
ment; others are more focussed and specific, such as control of African 
animal trypanosomiasis. -Overall, however, the resolutions adopted 
reflect not only the intensity of concern over the world's problems 

(1) 



of hunger and malnutrition, but also agreement on a program for 
attacking these problems. 

Now, two years after the World Food Conference, the crisis 
atmosphere which brought it about has, at least temporarily* 
abated. The world as a whole, and the developing countries "in 
particular, have experience two successive years of improved crop 
production and food harvests. Food prices have eased, stocks are 
up, fertilizer and other agricultural inputs are more available 
and their costs have stabilized or even declined. In part, these 
results reflect the, intensification of productive efforts that the 
World Food Conference helped to mobilize, but overall, improved 
output has arisen primarily from more favorable weather conditions 
in a number of the main producing countries as well as in the 
large food deficit areas. 

In relation to the overall goals, the net effect of this improve- 
ment has been essentially to move the world a few steps back from 
the brink of disaster and to provide a little more time to attack 
the fundamental problems of inadequate agricultural production and 
distribution that must be resolved if the World Food Conference 
goals are to be achieved. 

Since results to date appear to have served mainly to restore agri- 
cultural growth to a trend line without the acceleration deemed 
necessary to move visibly closer to World Food Conference goals, 
one could draw a fairly pessimistic view of the situation, and from 
that, of the level of additional efforts so far undertaken. It has 
to be recognized, however, that two years is simply too short a 
period for significant end-results to have occurred. With a few 
exceptions, the World Food Conference resolutions require a longer 
lead time for tangible pay-outs. Moreover, to the extent that the 
resolutions call for underlying socio-economic reforms, the impact 
even of the most successful effort in this regard, tends to be 
diffused througout a broad segment of the population and hence much 
more difficult to assess than would be the case, for example, for 
location-specific capital investments. 

While it may be difficult to relate results directly to the effort 
undertaken, and premature in many cases, given the inherent lag 
between investment and pay-off, one can nevertheless examine per- 
formance in terms of progress in the level of effort undertaken and 
implementation rate of the measures called for by the World Food 
Conference. Here the picture is considerably brighter and more en- 
couraging than if one focusses simply on the overall goals and 
implicitly judges progress in terms of the needs to be met. 



In each of the two years since the World Food Conference, 
overall efforts designed to expand food production in the 
developing countries, and improve income distribution and 
levels of nutrition have in fact been substantial and are 
steadily increasing. Implementation performance, however, 
has been uneven, with considerably more progress registered 
in some areas than in others. Principal features of follow- 
up efforts to the World Food Conference can be summarized as 
follows: 

~ U.S. foreign aid directed toward agricultural development 
has increased very substantially. A similar pattern in 
terms of increased levels and emphasis also has occurred 
in the official development assistance from other donors 
and from the international organizations, including the 
World Bank group and the regional development banks in 
which the United States participates. 

— In respect to the follow-up mechanisms proposed by the 
World Food Conference, the International Fund for Agri- 
cultural Development (IFAD) is now nearly a reality, and 
if the final necessary effort is made by all those con- 
cerned, the IFAD, designed specifically to promote agri- 
cultural development, will stand out as the single most 
visible accomplishment of the past year. 

— Within the agricultural 'sector of the developing countries, 
external donors as well as recipient governments have 
shown a much greater awareness of the social equity imper- 
atives of directly involving the poorest segments of the 
population, and new development projects reflect a major 
effort to refocus and shift priorities fn favor of the 
small farmer and rural development. 

— Food aid to the developing countries, although slightly 
under the 10 million tons target set by the World Food 
Conference, has nevertheless increased considerably, with 
a major portion of it provided by the United States. 

— In a number of areas, including fertilizers, pesticides, seed 
development and agricultural research, there has been con- 
siderable forward movement, although it remains less than 
what is called for by the World Food Conference or by an 
assessment of projected needs and requirements if agricultural 
production in the developing countries is to be steadily ex- 
panded at the targetted 4 percent annual average growth rate. 



•579 O - 77 



In the critical area of improving nutrition, the United 
States remains in the vanguard of developing innovative 
approaches to the problem, but overall progress toward 
eliminating malnutrition is sadly lagging, and this in 
turn reflects the slow progress being made in resolving 
the underlying problems of income distribution, food 
production and population growth in the developing 
countries. 

Food security, unfortunately, stands out as having shown 
the least forward movement among the major objectives 
agreed to by the World Food Conference. While the improved 
world production of the past two years has permitted some 
build-up in grain stocks, progress toward establishment of 
an international system of nationally held grain reserves 
to meet the contingency of a serious food crop disaster 
has been far slower than the U.S. had anticipated. 



EFFORTS TO INCREASE WORLD FOOD PRODUCTION 

The World Food Conference called on. all nations, developed and 
developing alike, to undertake large-scale efforts to expand 
world food production. The magnitude of the task has been 
indicated by several economic studies which project grain pro- 
duction in relation to grain requirements in developing countries 
over the next decade. The quantative results vary in accordance 
with the underlying assumptions used concerning rates of increase 
in production, population, income and consumption; but the studies 
show a consensus in projecting a serious gap between food pro- 
duction and requirements in the developing countries. 

Projected Food Deficit 

The most widely cited projection, prepared by the FAO for the 
World Food Conference, estimated that the average annual grain 
deficit in developing countries could reach 85 million tons per 
annum by 1985. This projection is based essentially on extra- 
polation of trend-line data and assumes a population increase of 
2.7 percent per annum and growth in grain demand of 3.3 percent 
per annum. Production is assumed to increase at a rate of 2.6 
percent annually, based on' past experience; but no allowance is 
made in the consumption projection for the effect on aygregate 
demand of efforts to improve income distribution and to improve 
levels of nutrition for the lower income groups. 



A study by the U.S. Department of Agriculture, incorporating a 
range of supply and demand assumptions, and a population growth 
rate of 2.4 percent, projects a grain deficit by 1985 for the 
developing countries varying between 16 and 72 million tons. On 
the low side, the gap between LDC production and demand is de- 
rived from a very high projected annual rate of growth in grain 
production of 4.1 percent, which in turn presupposes sharply 
increased agricultural inputs. More recent projections by the 
International Food Policy Research Institute (IFPRI) indicate 
that the shortfall in grains will be in the 95 to 108 million ton 
range by 1985/1986 depending on the rate of economic growth. 
Like the FAO projections, these do not consider the additional 
amounts that would be required to improve diets or the increased 
demand for food grains generated by possible redistribution of 
income to low income people. When adjusted for difference in 
source data, the FAO and IFPRI projections are not significantly 
different. 

These studies also indicate that the projected food deficit will 
be highly concentrated in poor countries with large populations— 
an estimated 40 percent will be accounted for by India, Bangladesh 
and Egypt— but will be equally serious in a number of smaller 
countries, particularly in Africa, where the quantities involved 
are not so vast. About half the total deficit is projected to be 
in countries with annual per capita GNP of less than $200. Even 
if exportable food surpluses can be produced at sufficient levels 
in other parts of the world, the food-deficit countries are not 
likely to have the foreign exchange to import such quantities 
commercially on a sustained basis. 

To meet this increased demand for food requires maximum agricultural 
production in the U.S., in other developed countries and in the 
developing countries themselves. Food aid can and should play a 
major transitional role by assuring supplies while the underlying 
production strategy is pursued, but clearly the top priority must 
be given to increasing food production, especially in the major 
food-deficit countries that have production increasing potential. 
If, in addition, significant efforts are to be made to reduce 
malnutrition, or if desirable changes occur in income distribution 
in favor of lower income groups (with a consequent increase in the 
demand for food), an annual growth rate in grain production by 
developing countries of at least 4 percent would appear to be a 
minimum objective. 

Investment requirements . 

The investment needed to bring about such an acceleration in agri- 
cultural production is prodigious. The FAO Secretariat, in a report 



to the World Food Conference, indicated that the total annual 
investment in agriculture in the developing countries would 
have to increase from the 1972 level of $8-10 billion to an 
annual average of $16-18 billion during 1975-1980. The report 
assumes that the developing countries themselves could be 
expected to mobilize domestic savings to cover only about 2/3 
of this investment gap. The remaining 1/3 of the investment 
financing would thus have to come from external sources. In 
1972 prices, the external resource requirement could thus be 
estimated at roughly $6 billion dollars. Taking into account 
intervening inflation, the estimated annual resource transfer 
in current 1976 prices would now approximate an average of 
$10 billion if the 4 percent growth target for developing coun- 
tries agriculture is to be sustained. While the specifics of 
the FAO report are open to question, the general conclusion is 
not— a much greater resource flow is required. 

Since the World Food Conference, there has in fact been a very 
substantial increase in the aggregate flow of development 
assistance to LDC agriculture. According to the most recent 
assessment prepared by the Consultative Group on Food Production 
and Investment (CGFPI), commitments for concessional resource 
transfers to LDC agriculture amounted to almost $6 billion in 
1975. This represents a 50 percent increase over the $4 billion 
level. in 1974, which in turn was more than 50 percent over that 
of 1973. Comparable data is not yet available for 1976, but on 
the basis' of partial information from several of the main sources, 
the level of commitments this year will show a further, although 
much smaller, increase. 

While present levels of assistance to LDC agriculture still fall 
substantially short of the inflation-adjusted figures repre- 
senting projected external resource requirements, the dramatic 
increase obtained since 1973 suggests that an annual resource 
flow target of $10 billion is attainable. It could in fact be 
reached in 1977 with a further increase in effort similar to 
what has already been demonstrated as possible. 

Certain major qualifications, however, should be added to such 
figures. Most notably, the external resource gap estimate is 
based on food production needs, while the resource commitment 
figures include not only assistance directly related to food 
production but also assistance for more broadly defined areas 
such as agro-industries, fertilizer plants and rural infra- 
structure, which stimulate and support food production, but do so 



only indirectly. Secondly, the commitment levels so far 
attained will be translated into disbursements and increased 
production only over future years. Because of the investment 
lag, current expenditure levels are not yet as high as the 
$6 billion figure may imply. Conversely, however, it does not 
include private capital flows which could be expanded con- 
siderably to help meet the overall external resource require- 
ments. 

Multilateral Assistance 

Within the total commitment levels of assistance to agriculture 
in developing countries, the multilateral agencies, in which the 
U.S. plays an active role in terms both of policy coordination 
and financial support, have been responsible for roughly half. 
The major effort has come from the World Bank Group. IBRD/ IDA 
commitments to agriculture increased from $956 million in 
FY 1974 to $1848 million in FY 1975. The comparable figure for 
the fiscal year ending June 30, 1976, shows a moderate decline 
to $1628 million. In addition, however, the World Bank has 
provided approximately $700 million since the World Food Conference 
to expand LDC fertilizer production. In terms of total World Bank 
lending, the share going to agriculture has doubled from 15 percent 
to 30 percent over the past several years. 

Apart from the World Bank, the regional development banks also 
have registered a dramatic. increase in financing agricultural 
projects. The Asian Development Bank almost tripled its lending 
to agriculture in 1974, to a level of $134 million, or almost a 
quarter of all loans approved that year. In 1975, loan approvals 
to agriculture rose further, to $246 million, or 37 percent of 
the total. In the case of the Inter-American Development Bank, 
agricultural lending increased from $182 million in 1973 to $228 
million in 1974 and to $332 million in 1975. Substantial further 
increases for agricultural funding by the regional banks has 
occurred in 1976 offsetting the decline for the World Bank. 

Bilateral Assistance. 



Increased emphasis on agriculture also has characterized bilateral 
assistance. While each country ultimately determines its own 
allocations of external assistance, the U.S. has been a consistent 
advocate of increased emphasis on agriculture in all of the inter- 
national fora in which development needs and plans are discussed 
and coordinated. A major example is the Development Assistance 
Committee (DAC) of the OECD, where followiag the initiative and active 
lead of the U.S., all major bilateral donors have undertaken extensive 
reappraisals of their development assistance programs in the area of 
food and agriculture. Among the U.S. Government agencies, A.I.D., as 



"spokesman for development," has consistently encouraged 
other bilateral donors as well as the international 
financial institutions to increase assistance to food and 
nutrition, particularly for the lower income countries 
where the nee-d for accelerated food production 1s greatest. 

Within the A.I.D. program itself, food production and 
nutrition programs have been given top priority and now amount 
to almost $500 million, or over 50 percent of the bilateral 
development assistance funding provided by A.I.D. The follow- 
ing table shows the trend over the past several years for 
A. I.D.'s total functional assistance, the amounts directed to 
food and nutrition, and the relative share of the total which 
the latter represents. 



CHANGING COMPOSITION OF AID DEVELOPMENT 
ASSISTANCE FUNCTIONAL ACCOUNTS 



Trans. 
FY 74 FY 75 FY 76 Quarter FY 77 



TOTAL 


779 


768 


720 


214 


925 


Food & 
Nutrition 


275 


436 


407 


117 


487 


Percent of 
Total 


35.3 


56.8 


56.5 


54.7 


52.6 



With the past several years having served to build a broader base 
and test out the new program techniques involved in a more con- 
centrated attack on the interrelated problems of food production, 
rural development and nutrition, a substantial further increase in 
assistance to food and nutrition projects could be managed on a 
cost-effective basis. 



EMPHASIS ON THE SMALL FARMER AND RURAL POOR 

If the primary thrust of the World Food Conference resolutions 
is productive, that is, focusing on the means and effort required 
to expand agriculture and food production, the second thrust is 
distributive, that is, assuring that social equity considerations 



are taken in to account more specifically so that the small 
farmers and rural poor who constitute the majority of the 
population in the developing countries fully participate in 
and benefit from the expanded production. The emphasis 
placed on lower income groups by the World Food Conference 
is reaffirmed in respect to A.I.D.'s programs by the 
Foreign Assistance Act, as amended in 1975. Specifically 
Section 103 on Food and Nutrition, para (c), states that, 

"Assistance provided under this section shall 
be used primarily for activities which are ■ 
specifically designed to increase the productivity 
and income of the rural poor " 

The objectives of maximizing production, on the one hand, 
and assuring more equitable distribution of the benefits, on 
the other, are not incompatible, but do require careful coordi- 
nation and balance in what has come to be called a partici- 
patory development strategy. Experience shows that agri- 
cultural investment efforts which succeed in raising production 
do not necessarily generate a commensurate increase in employ- 
ment or income for low income people. Increased foodgrain 
production, for example of vital importance in the consumption 
patterns of low income families in many countries, may not 
provide a direct increase in employment even sufficient to 
create adequate demand for the increased grain production itself. 
Conversely, however, a substantial increase in employment and 
hence income of the poor majority cannot be sustained in low- 
income countries unless there is a commensurate gain in total 
food production and other goods to provide for the increased 
consumption demand accompanying higher incomes. 

A practical strategy which increases both production and income 
of poor families is complex and likely to vary among countries 
with different factor endowments and levels of development. 
Moreover, it must confront numerous problems both of a political 
and economic nature whose solution would lead many to despair 
of seeing any real progress achieved in the absence of political 
revolution and establishment of authoritarian regimes which can 
reallocate resources without regard to market forces. The 
latter, it is argued, mean that economic returns to factors of 
production are a direct consequence of the marginal product 
and relative scarcity of each factor; and since the only factor 
of production that the rural poor control to any degree is their 
Tabor, rural incomes will remain very low as long as labor is in 
surplus supply. 



10 



Participatory Strategy 

The participatory agriculture strategy that A.I.D. is follow- 
ing is designed to work within the context of market forces 
rathpr than against them. This still means, however, that the 
low income countries have to face critical policy choices and- 
possible trade-offs. To attain the basic objectives of a 
participatory strategy, a substantial increase and redirection 
of public expenditure flows may be required, or major realign- 
ment and adjustment of agricultural prices in relation to the 
cost of inputs, or adjustment between import and export prices 
through tariff or currency changes. In other cases, redistri- 
bution of land may be required. 

Each of these policy measures may be viewed as an unacceptable 
short-run sacrifice by powerful urban and rural elite groups. 
Without such changes, however, the specific, direct efforts to 
help the small farmer and rural poor through improved access 
to agricultural inputs, credit, marketing services, etc. will 
provide only limited and perhaps temporary benefit. A major 
aspect of the U.S. effort to implement the rural development 
objectives of the World Food Conference is to encourage through 
our participation in Consultative Groups and multilateral 
assistance organizations as well as through our bilateral assist- 
ance programs the undertaking of necessary policy changes and to- 
ne! p support the implementation of such changes through the 
financial assistance we can provide. 

Another area in which considerable scepticism has been raised 
in respect to the chances of success for improving incomes for 
the small farmer and rural poor, on a long-run basis, turns on the 
question of savings behaviour. Conventional economic theory 
has held that the marginal propensity to save increases with levels 
of income, i.e., the rich save more both in absolute and relative 
terms than do the poor. The resource gap analysis discussed 
previously indicated that domestic savings as well as external 
resources must be raised if investment and production targets 
are to be met, and that two-thirds of the aggregate financing 
requirements must come from efforts to mobilize domestic savings 
within the developing countries themselves. Hence, it can be 
argued that in the developing countries where inadequate domestic 
savings already constitute a major constraint on expanding new 
investment and production, any large-scale effort to shift incomes 
in favour of the poor as called for by the World Food Conference 
will be self-defeating since the net effect will tend to reduce 
aggregate savings and further limit the financing available for 
productive investment. 



11 



The participatory strategy A.I.D. is following seeks to help 
developing countries break out of this vicious circle by 
assuring that development efforts in the rural sector will 
maintain a balance between increased income and savings and 
the higher level of consumption goods that will be demanded. 
In addition, A.I.D. is also financing policy-oriented social 
science research into questions such as savings and investment 
behaviour of lower income groups in order to better understand 
how problems in this area can be overcome. 

In this regard, it is worth mentioning the striking results 
of a major study now underway in which the findings suggest 
that the savings propensity of a broad range of lower income 
groups may actually be higher than that for the economy as 
a whole, in direct contrast to what conventional economic 
theory would indicate. "In the case of the small farmer, the 
rate of savings may be very high, although this appears less 
in monetary terms than in direct improvement, i.e., investment 
in his dwellings, livestock and small landhol dings in the form 
of better drainage and other means of increasing the soil's 
productivity. 

Small farmers are generally efficient allocators of scarce 
resources given the constraints they face and typically can 
achieve yields per acre as high as or higher than large 
farmers. For this reason, A.I.D. is convinced that the best 
approach for implementing the World Food Conference's twin 
goals of increased food production in tandem with greater 
social justice lies in programs designed to help small farmers 
gain access to agricultural inputs and services that they need 
to become more productive. The essential elements are each 
covered under one or more of the World Food Conference resolu- 
tions and include such inputs as technical information, credit, 
fertilizer, insecticides and improved seeds; an appropriate 
system of incentives to assure a fair return; suitable rural 
infrastructure such as market roads and irrigation systems; 
minimum processing, storage and marketing facilities; and 
cooperatives or similar organizations enabling participation 
by farmers in decisions affecting them. 

Each activity in A.I.D.'s program is designed to strengthen 
and support one or more of these components of an integrated 
agricultural development system. In addition to programs and 
projects in this area directly carried out by A.I.D., the U.S. 
Government participates actively in the work of the FAO and 
all of the other international agencies which are carrying out 
parallel programs and efforts. 



80-579 O - 77 



12 



Agricultural Research 

Apart from the programs designed for immediate impact based on 
existing technology, A.I.D. also is heavily involved in pro- 
moting research which will yield direct and indirect benefits 
to small farmer agriculture over the longer term. Such research 
efforts range from social science investigations into the 
savings behaviour of the low-income groups as mentioned above, 
to applied physical science research into questions such as 
improved nitrogen fixation. Overall, A.I.D.'s research and 
research support funding now amounts to approximately $50 million 
annually. 

A major portion of this is carried out through the Consultative 
Group for International Agricultural Research (CGIAR), which 
A.I.D. has supported since its inception, and which coordinates 
and funds research programs in nine international agricultural 
research centers. These centers have been responsible for major 
breakthroughs in the development of the new high-yielding vari- 
eties of wheat, maize, rice and other grains. In addition, 
under Title XII of the Foreign Assistance Act, the new permanent 
Board for International Agricultural Development has been recent- 
ly established and will provide a focal point for expanding the 
role of U.S. land grant colleges and universities in efforts 
concerning the food production problems of the developing countries, 



NUTRITION 

Closely related to efforts to increase the productivity of small 
farmers and the rural poor are policies and programs designed to 
improve levels of nutrition. While increased agricultural pro- 
duction and income may not by themselves automatically result in 
improved nutrition, they are nevertheless essential conditions 
and their absence will retard or even vitiate whatever progress 
might otherwise be achieved by carrying out specific nutritional 
programs. By the same token, reduction in the rate of population 
growth is similarly necessary if significant long-run progress 
is to be sustained in overcoming malnutrition and its consequences 
among the poor of the developing countries. In fact, improved 
levels of nutrition might be regarded as the ultimate objective 
of the World Food Conference and as such is a goal for which 
tangible progress depends not simply on efforts directly focussed 
on nutrition, but even more importantly on the rate of progress 
among all of the interrelated, underlying factors. 



13 



While the past two years have witnessed an alleviation of the 
extremely critical hunger and malnutrition situation which 
prevailed in many areas at the time of the World Food Conference, 
the target date which was adopted for the elimination of these 
problems still appears as remote as it did at the time of the 
Conference. This disparity between the expectations raised and 
the results so far achieved has contributed to a sense of 
frustration and disappointment among many of those who are 
keenly concerned with these problems. This in turn has generated 
considerable criticism of what is seen as a lack of real commit- 
ment and effort undertaken in the area of nutrition by all of 
those countries and organizations that participated in the 
Conference. 

A. I.D. has not escaped such criticism. This fact entails some 
measure of irony it might be suggested, since it- was largely 
A. I.D., with support of other agencies of the U.S. Government, 
which did the pioneering work on many of the specific approaches 
ultimately endorsed by the World Food Conference and embodied 
under the Nutrition resolution. At the same time, however, such 
criticism is not without foundation, given the leadership role the 
U.S. has assumed in the area of nutrition, and the technical and 
financial capability that could in fact be mustered. 

Among the criticisms of A.I.D.'s effort in the area of nutrition 
are: '1) the fact that funds specifically earmarked for nutritional 
projects constitute a very small portion of the total foreign 
assistance program; 2) that A. I.D. together with the other agencies 
of the U.S. Government with responsibilities in this area could be 
making substantially greater inputs into the organization and 
implementation of nutritional efforts being carried out by the 
international agencies; and 3) while A. I.D. has developed a number 
of impressive nutritional techniques, it has been weaker on the 
implementation side by not providing the staff necessary to help 
carry out efforts in the field. 

In response to the first point, it may be noted that all of the 
funds which are appropriated under Section 103 of the Foreign 
Assistance Act are ultimately directed to the goal of improving 
nutritional levels whether they finance specific nutrition studies 
and projects or attack the underlying economic problems which 
must be resolved if nutritional levels are to be raised on a self- 
sustaining basis. The same is true for most of the PL 480 program. 
Moreover, even in the narrower context of specific nutrition projects, 
the U.S. has helped to carry out a number of significant new 
initiatives both in bilateral and multilateral areas. These include 
nutrition surveys in a number of developing countries, increased 
scientific research in the area of nutrition and a campaign against 
vitamin A blindness and iron deficiency anemia. 



M 



A. I.D. is currently undertaking an intensive reappraisal of 
the effectiveness and potential directions of its programs in 
the area of nutrition. Because of the importance of this issue 
and because of the particular concern that has been raised over 
the adequacy of efforts so far made, the question of U.S. 
involvement in nutrition is examined in considerable detail 
under the second section of this report pertaining to imple- 
mentation actions resolution-by-resolution. 



BALANCE BETWEEN FOOD AND POPULATION 

Rapid population growth in developing countries— at current 
rates a doubling of population every 35 years— seriously 
exacerbates the already difficult task of improving the 
welfare of millions who live at or near subsistence. Such 
growth creates additional demands on scarce resources and 
impairs the precarious health of those who share present and 
future development burdens. Worldwide population growth 
generates increasing environmental pressures and contributes 
to international political and economic disruption— factors which 
will affect the lives of all of .us in the future. 

Although only a decade ago it would have been impossible for 
a large international conference to seriously discuss population 
issues, let alone reach any agreement in this area, the World 
Food Conference clearly showed itself to be concerned with the 
important relationship between growing world population and 
the ability of the world to feed itself. In Resolution IX, it 
called on governments and people "to support. . .rational popu- 
lation policies ensuring to couples the right to determine the 
number and spacing of births"— an action reinforcing the re- 
solutions adopted at the earlier World Population Conference 
in Bucharest. 

The population issue and its consequences go far beyond the 
quantitative problem of achieving a reasonable balance between 
world food production and consumption and touches on a whole 
range of variables affecting quality of life, especially among 
lower income groups. A.I.D., together with other governments, 
UN agencies and private organizations involved in family plan- 
ning have helped to focus attention on the fact that access to 
information and the means of planning family size are essential 
to the improved growth and nurturing of children and to the 
general health and welfare of the family. Population programs 
also are increasingly based on recognition that women's roles and 
status in the society have a strong bearing on decision making 
regarding the spacing of children. 



15 



The U.S. has played a key role both in stimulating awareness 
of the need to slow population growth and in supporting 
techniques and facilities designed to help in this effort. 
By the end of the current fiscal year, the U.S., through A.I.D., 
will have provided more than $1 billion in 'international 
assistance to population programs throughout the- world. This 
will amount to more than half of all such assistance to the 
developing 'countries. 

While population programs had limited impact in their initial 
years, the growing recognition throughout the developing 
nations of the seriousness of the problem and the increased 
availability of family planning services are now making inroads 
in the effort to slow the rate of tne world's population growth. 
Expressed in increments to the total population, approximately 
70 million persons were added in 1970. In 1974, the increment 
was approximately 63 million, and the downward trend appears to 
be accelerating. 



WOMEN AND FOOD 

The Conference also recognized the important roles of women 
in food production, stating that rural women in the developing 
world account for at least fifty percent of food production. 
In Resolution VIII, governments were asked to involve women 
fully in decision-making for food and nutrition policies; grant 
them rights to full access to all medical and social services 
including family planning, and to education and information 
essential to the mental and physical fitness of children. Govern- 
ments were asked to educate and train women especially in food 
production and agricultural technology, marketing and distribution 
techniques as well as to provide for consumer, credit and nutrition 
information. Inherent in these expressed desires is the recom- 
mendation that governments promote equal rights and responsibilities 
for men and women so that women's energies, talents and abilities 
are fully utilized in the battle against world hunger. 

Many steps have been taken by governments, UN agencies and our 
foreign aid program on these important issues. The General 
Assembly's unanimous passage of the World Plan of Action resulting 
from the International Women's Year Conference in Mexico ascribed 
to the same recommendations. The UN Commission on the Status of Women 
met in Geneva in September, 1976, and added a special section on 
Rural Development to the Convention to Eliminate Discrimination 
Against Women. If adopted by the General Assembly, this Convention 
will become binding on all member States, and for the first time 



16 



includes the principles of the Food Conference and World 
Plan regarding women and food production. Highlights of 
these and Agency actions are outlined in the Annex, 



FOOD AID 

While the long term solution to the world's food problem 
clearly lies in expanding agricultural production in the 
developing countries, substantial amounts of food aid will 
be required for some time to come to help the food deficit 
countries cover their import requirements and feed particu- 
larly vulnerable groups. The World Food Conference adopted 
this concept under Resolution XVIII which calls on donors 
to consider ways of increasing food aid in the short term 
particularly to the most seriously affected. The Conference 
also adopted a food aid target of 10 million tons of grain 
annually. 

While the food aid target has not yet been met, the current 
shortfall is less than 10 percent, and the U.S. has been 
remarkably generous in terms' of its contributions to this 
international effort. During FY 1976, the major donors com- 
mitted 9.2 million tons of grain as food aid, of which almost 
50 percent was provided by the United States. 

The U.S. food aid program serves a variety of developmental 
needs. Under Title I of PL 480, the U.S. sells agricultural 
commodities to needy food deficit countries on highly con- 
cessional terms. This helps to provide an immediate buffer 
against shortfalls in their production and enlarges the 
volume of food available for consumption. Under Title II of 
PL 480, the U.S. donates blended foods to nutrition programs. 
Most are administered by voluntary agencies, and maternal and 
child health projects are given the highest priority. The PL 
480 program has recently recovered to a level which provides 
minimal security against moderate fluctuations in world food 
production as well as assured supplies of commodities for 
Title II nutrition programs. 

The International Development and Food Assistance Act of 1975 
includes several provisions designed to ensure that U.S. food 
aid is concentrated to benefit the poor in needy food deficit 
countries. Of total commitments under Title I, 75 percent must 



17 



be allocated to countries with an average annual per capita 
GfJP of $300 of less; and, of the 1.3 million metric ton 
minimum level for Title II programs, 1.0 million must go to 
U.S. voluntary agencies and the World Food Program. 

In using food aid as a development resource, it is important 
to recognize that a successful policy for rapidly expanding 
local agricultural production for improving the welfare of 
the low income peoples of the world is necessarily part of a 
broader strategy that increases employment and the purchasing 
power of the lower income people. It is a complex undertaking 
in which, initially, demand for food may exceed growth in supply 
until employment and income generating programs take hold. 
Frequently, moreover, a short-term dilemma is also presented 
since in many developing countries food production fluctuates 
substantially from year to year. 

The proceeds of concessional sales are often used to finance 
programs to increase agricultural production and the commodi- 
ties also contribute to supply stability in the face of lags 
in production and fluctuating weather. Stable food supplies 
are an essential underpinning for developing country govern- 
ments to support a strategy of raising incomes and creating 
demand for expanded local food production. For the longer run 
a range of devices may be pursued to increase production and 
improve distribution in order to ensure the necessary food 
supplies. Clearly there is potential for joint programming 
of U.S. dollar and food assistance to achieve common development 
objectives, and several recent changes in legislation and pro- 
gramming procedures have been established for this purpose. 
Food aid now is managed in a cycle similar to the one used 
for dollar assistance, and this greatly simplifies the 
integration of the two resources. 

In the long run, of course, the goal of U.S. assistance is to 
help the developing countries to provide themselves with a 
nutritionally adequate diet. If their tastes and purchasing 
power permit, some countries may choose to import foodstuffs 
on a commercial basis. The United States is in a position to 
continue to compete effectively in those markets. 

The PL 480 Title I program, properly defined, can play a 
significant role in influencing countries toward strategies 
designed to increase local incomes and production, thereby 
helping to meet the humanitarian objective set forth by the 
World Food Conference. 



18 



Each country context will differ, of course, and in each our 
ability to effect a specific linkage of food aid to develop- 
ment will depend upon careful analysis, planning and consul- 
tation by the recipient, the U.S. Mission and interested 
agencies in Washington. Food aid plans must be constructed 
to ensure that U.S. food aid does not act as a disincentive to 
local agriculture production by depressing prices farmers 
receive and that it is linked with other development programs 
to achieve needed additional policy changes and commitment 
of resources by the recipient government. 



FOOD SECURITY 

At the time the World Food Conference was held, world stocks 
of food grains had been drawn down to their lowest level in 
twenty years following a succession of poor harvests and crop 
failures. A number of grain surplus countries, including the 
United States, had taken steps to restrict exports and it 
appeared that the world could not sustain another season of 
poor harvests without confronting a major international 
catastrophe which would bear most heavily on the food deficit 
nations. In the face of this situation, the Conference adopted 
a number of resolutions and recommendations designed to strengthen 
world. food security. The main elements of the strategy on food 
security included an improved policy for food aid; an expanded 
information and early warning system on crop prospects; expansion 
of food storage systems in the developing countries; and the 
implementation of a proposed International Undertaking on World 
Food Security. In conjunction with the latter, a number of 
governments agreed to study the feasibility of establishing an 
internationally coordinated system of national reserves which 
would be large enough to cover foreseeable major production 
shortfalls. 

The United States has supported the principles, objectives and 
guidelines contained in the Undertaking on World Food Security 
and has given this issue high priority. We have also offered 
a specific proposal for a reserves system for wheat and rice 
within the framework of the International Wheat Council to 
improve world food security. 

Unfortunately, although all governments recognize the need to help 

protect developing nations from the vagaries of the weather 

and to ease production shortfalls, progress toward agreement on 



19 



an effective system of food reserves has been disappointingly 
slow. In the view of the U.S. Government, the slowness which 
has characterized discussion on this question results less from 
a lack of the will to put a grains reserve system into place 
than it does from the exceedingly complex policy problems in- 
volved in designing for an effective system. 

Although technical discussions are proceeding, one of the key 
issues that has not been resolved concerns the appropriate 
trigger mechanism under which the system's reserves would be 
accumulated or released. A number of the participating coun- 
tries maintain that the appropriate mechanism should be price 
related. Others, including the U.S., favor a mechanism based 
on a production/stocks trend index, on grounds that a price mechanism 
would not necessarily reflect real changes in the world's 
physical availabilities of food grains. 

The U.S. Government is confident that these differences can be 
resolved in such a way that the legitimate interests of farmers 
in the food exporting nations can be protected. While there has 
been a lessening of the apparent urgency on this issue as a 
result of the recent improvement in food crop production and con- 
siderable progress toward the replenishment of normal grain 
reserves during the past year simply through an improvement in 
the international production-consumption balance, the United 
States will continue to work for the establishment of an effective 
system of reserves to safeguard the interests of all countries, 
and especially the developing countries, against food production 
shortfalls. 



I FAD 

The idea of an international Fund for Agricultural Development, 
or IFAD as it has come to be called, represents the most original 
and innovative idea to come out of the World Food Conference. 
Although many countries, including the U.S., were initially un- 
enthusiastic, the magnitude of the resource gap as well as agree- 
ment among delegates that the new institution would not duplicate 
existing international agencies led to the adoption of the IFAD 
proposal as a new mechanism specifically designed to channel 
additional international assistance to support efforts by develop- 
ing countries to expand food and agricultural production. 

Now, after two years of intensive international negotiations on 
contributions to the Fund and on the Articles of Agreement to 
govern its operations, the IFAD is on the point of becoming a 



-579 O - 77 



20 



reality. If the final effort currently in process to complete 
the $1 billion funding target is successful, this new fund will 
stand out as the single most notable accomplishment of the past 
year in respect to steps undertaken to carry out the resolutions 
of the World food Conference. 

A principal feature of the new Fund, and one which distinguishes 
it from other multilateral assistance efforts, is the fact that 
it was conceived as a joint undertaking to bring together for 
the first time both traditional foreign aid donors and new donors, 
the members of the Organization of Petroleum Exporting Countries 
(OPEC). Working out the respective responsibilities and obliga- 
tions between the two groups of donors represents a significant 
step in terms of international cooperation, but this difficult 
process prevented the Fund from materializing sooner. 

Underlying this is the fact that the funding issue was approached 
from a different perspective by each of the two groups. The 
traditional donors, -led by the United States, took the position 
that if the new endeavor was to be a truly joint undertaking, the 
funding responsibility also should be equally shared by the two 
groups of contributors. The OPEC members, on the other hand, 
argued that the relative disparity between levels of development 
and national product of the two categories of donors did not 
justify equal contributions. As negotiations proceeded, this 
difference was bridged with a compromise by both sides to the 
effect that, although contributions need not be identical, they 
would be approximately equal. Subsequently, however, after pledges 
of approximately $530 million, including the U.S. contribution of 
$200 million, were announced by Category I countries, the OPEC 
members of Category II announced that their contribution would be 
limited to $400 million with-the proviso that Category I must 
increase its share to $600 million. 

For a number of months following the June, 1975 plenipotentiary 
conference, where it was expected that the IFAD agreement would be 
opened for signature, the resulting shortfall against the $1 billion 
target and the lack of parity in contributions created an impasse 
which has threatened to cause the IFAD initiative to miscarry. 
However, intensive diplomatic efforts carried out in international 
meetings where IFAD has been discussed and direct bilateral approaches 
to the principal OPEC contributors now make it likely that the fund- 
ing problem can be resolved and the IFAD agreement put into effect 
before the end of this year. 



21 



The impending agreement results, on the one hand, from a more 
constructive attitude and increase in contributions by OPEC 
and, on the other hand, from a decision by a number of 
Category I contributors also to increase their contributions, 
the latter on grounds that the purposes that the IFAD is de- 
signed to serve outweigh continued insistence on the issue 
of closer comparability between the two groups of donors. 

Throughout the long process of making IFAD a reality, the United 
States has played a strong leadership role, helping to resolve 
the funding and parity issues, and designing the policies and 
procedures incorporated in the articles of agreement to ensure 
that IFAD will function not only efficiently but in a manner 
that is compatible with the existing international institutions 
with which the Fund will collaborate. 

U.S. leadership in the IFAD endeavor has been made possible by 
the substantial contribution the U.S. has pledged and by the 
exceptional degree of coordination and cooperation between the 
Executive branch and the Congress that has characterized U.S. 
participation in IFAD from the beginning of discussions on this 
undertaking. 

With the funding issue now resolvable, the Articles of Agreement 
adopted and the Preparatory Commission actively engaged in work- 
ing out the procedures, the IFAD can be brought quickly into 
operation. This will reaffirm the strong commitment the United 
States has expressed through supporting the resolutions of the 
World Food Conference to expand food production in the developing 
countries and to alleviate hunger and malnutrition. 



22 

ANNEX 
World Food Conference Resolutions 

Resolution I: Objectives and Strategies of Food Production 

In this Resolution the Conference resolves that the objective of the 
international community as a whole should be the elimination of hun- 
ger and malnutrition within a decade. It calls on the governments 
of developing countries to give high priority to agricultural and 
fishery development, to formulate short, medium and long-term food 
production and utilization objectives taking into account demographic 
and general development goals consistent with good environmental 
practices; take measures for agrarian reform; and develop adequate 
national supporting services. 

The Conference also requests or urges governments to increase their 
assistance for agricultural development, especially to least developed 
and most seriously affected countries, including capital on favorable 
terms, and to provide the necessary inputs for agriculture such as 
fertilizers, pesticides, and machinery with incentives to enable the 
producer to buy. The Conference requested all governments to reduce 
waste of all agricultural resources, land, water and energy. 

The Conference called on the UN regional Economic Commissions to • 
continue their assistance to governments of their regions in their 
economic development efforts. It also urged FAO, in consultation 
with UNDP and other relevant organizations to develop criteria for 
selecting suitable areas for food production; to make an inventory, 
on the basis of the criteria, of areas suitable for additional pro- 
duction; and to indicate ways and means for carrying out additional 
food production. 

In a final section of the Resolution the Conference requested the 
World Bank, Regional Banks, UNDP and UNIDO to mobilize the support 
of their respective communities in support of the objectives of this 
Resolution. 

Food production in developing countries increased by 5% during 1975, 
or by an amount greater than the declared 4% goal of the World Food 
Conference. While this development is in part no doubt due to unusually 
favorable weather conditions, it is also in part due to the high 
priority being given to increasing their own agricultural production 
by the international community. The United States almost doubled its 



23 



bilateral development assistance for food and agriculture in the past 
three years, from $275 million in FY-74 to $487 million in FY-77. 
Meanwhile, official development assistance commitments from all inter- 
national sources for agriculture have grown from $2.5 billion in 1973 
to $5.9 billion in 1975, with World Bank lending for this purpose 
having grown from $1.1 billion to 2.2 billion. 

An important part of the process of alleviating world food problems 

is the identification of the extent and distribution of those problems, 

measurement of the flow of international resources directed toward 

their solution, and evaluation of major policy and other constraints. 

The U.S. Government has been very active in all of these efforts in 

cooperation with other governments, and with the World Bank, FAO, 

UNDP and UN agencies in related fields; the recently created World 

Food Council recommended by resolution of the World Food Conference 

and UN General Assembly; and with two other organizations resulting 

from that Conference, i.e. the Consultative Group on Agricultural Production 

and Investment, and the IFAD-International Fund for Agricultural 

Development which is currently in the process of establishment. 

The United States has also been active in international efforts to 
address particular aspects of food production problems. For example, 
during FY-76 AID devoted more than $1 million toward reducing the 
sometimes considerable losses of food between the farm field and the 
final consumer. The U.S. has joined with others in a consortium 
dedicated to solving the agricultural problems of the Sahel region 
of Africa. 

In short, the U.S. Government, through A.I.D. has been very deeply 
involved in carrying out the recommendations of Resolution I, 
particularly through A.I.D. whose largest component of technical '» 
assistance and supporting financial assistance is in the field of 
agriculture. Examples of specific fields of activity by A.I.D. are 
discussed further in connection with other conference resolutions. 



24 



Resolution II: Priorities for Agriculture and Rural Development 

This Resolution calls on all governments to implement appropriate pro- 
gressive agrarian reforms; promote cooperative organizations; encourage 
formal and non-formal education of rural people. It calls on interna- 
tional and bilateral agencies to emphasize through various activities 
integrated rural development programs. Among the institutions mentioned, 
through which integrated rural development might be brought about are 
those for employment and income generation, credit and marketing systems, 
and cooperative institutions. The Resolution urges that such institu- 
tions be organized in developing countries to reach the mass of farmers 
and rural workers, and taking into account the role of rural women in 
agriculture. It also aims at elimination of illiteracy within a decade. 
The Resolution calls on the governments of developed countries to become 
mobilized to take part in development work. 

Because agrarian reform is understandably associated with politically 
sensitive issues, AID generally follows an indirect approach toward 
encouraging secure tenancy in those developing countries where such 
reform is appropriate, and has frequently accorded more direct re- 
sponsibility in this area to multilateral organizations such as the 
World Bank and the FAO. AID has extended the 211(d) utilization grant 
to the University of Wisconsin Land Tenure Center (LTC), largely to 
accommodate the continued demand of developing countries for the Center's 
technical services. Concurrently, AID has encouraged the LTC to focus 
its research program toward key agrarian reform issues, the solution of 
which has policy as well as operational implications. AID has also 
endorsed the LTC's major plans for an International Seminar on Agrarian 
Form to be held during the summer of 1977. This largely indirect 
assistance to the developing countries through the LTC is complemented 
by AID-supported cadastral surveys and related land tenure studies in 
various countries, including Bangladesh. 

Cooperatives continue to constitute a primary means of grouping and 
involving large numbers of small farmers in rural development. AID 
provides grant support to several institutions including Agricultural 
Development International (ACDI) which provide technical assistance 
to developing countries in the field of organizational 



25 



development; the ACDI plans to sponsor a seminar on cooperatives which 
will provide an international forum in which to bring together expertise 
and experience in this vital area. On the more operational level, AID 
provides loans (or is reviewing requests for loans) for electric coop- 
eratives in the Philippines, small farmer organizations in Honduras, 
cooperative marketing in the Philippines, and small farmer credit 
cooperatives in Kenya. The recent program guidance that was sent to 
AID's field Missions encouraged the continued emphasis on cooperative 
development. 

Education (formal and non-formal) and human resource development is one 
of AID's major sectoral areas of emphasis, together with food and 
nutrition, and health and family planning. This year, guidance was 
sent to the field indicating how Missions could better integrate educa- 
tion programs into their total development assistance programs in a 
fashion more consistent with the learning needs of the rural poor. 
In addition, AID supports projects designed to improve the educational 
levels in developing countries, especially in Latin America and Asia. 

Food production and rural development programs (which often include 
agrarian reform concerns, cooperative organizations, and education 
activities) are the cornerstone of the AID program in most developing 
countries. Accordingly, AID continues to allocate substantial develop- 
ment assistance resources allocated to increase yields per acre on 
small farms, to increase employment opportunities of the underemployed, 
and to improve income distribution. AID is currently reviewing re- 
quests for an integrated rural development program in Chad, a rural 
resource support loan in Ghana, agricultural sector loans in Tanzania 
and the Dominican Republic, grain marketing in Zaire, simple irrigation 
in Indonesia and rainfed agriculture in Pakistan, and appropriate tech- 
nology requests from various countries including Peru. The new Title 
XII, Famine Prevention and Freedom from Hunger, has permitted AID to 
work more closely with U.S. land-grant and other universities in promoting 
increased food production. (See Resolution IV for further details on 
implementation of Title XII.) 



26 



Resolution III: Fertilizers 

This Resolution contains eight recommendations, as follows: 

Recommendations 1 and 2 encourage bilateral and multilateral donors 
to give special attention to supplying fertilizers to the MSAs 
during the period of shortage and astronomically high, prices. 

Recommendations 3 and 4 recommend that FAO, UNIDO and World Bank 
jointly assist developing countries to improve efficiency of their 
fertilizer plant operations; and urge international institutions, 
developed countries and others to provide financial and technical 
assistance, technology and equipment on favorable terms to build 
necessary additional fertilizer production facilities in develop- 
ing countries having essential raw materials, and to assist them 
in other ways with the establishment of necessary infrastructure. 

Recommendation 5 requests interested countries to consider enter- 
ing into cooperative ventures or partnerships for promotion of a 
stable fertilizer production/supply system enabling developing 
countries to obtain them. 

Recommendation 6 requests 'the FAO Commission on fertilizer, member 
countries, and international organizations (UNIDO and World Bank) 
to prepare an authoritative analysis of the world demand and supply 
situation as a basis for world fertilizer policy. 

Recommendation 7 requests member countries to introduce standards, 
policies and measures to ensure quality, including mineral and 
alternative sources of plant nutrients such as organic fertilizers 
and others. 

Recommendation 8 recommends intensification of international efforts 
in the transfer of technical knowledge through extension/education 
and greater use of various methods for improving soil fertility. 

The U.S. government, primarily through AID, participated actively 
in multilateral cooperative programs and bilateral programs 
as well . 



27 



In regard to recommendations 1 and 2, although the shortage is 
history and prices are now at a reasonable level, the U.S. 
through AID is continuing to emphasize fertilizer in its program. 
In FY 1976 and the Transition Quarters, July - September, AID 
Financed 410,895 and 39,000 *metric_tons of fertilizer valued at 
$65 million to nine (9) countries, in FY 1977 supplying 287,000 
tons to date. 

Following recommendations 3 and 4, the U.S. has actively supported 
the programs of FA0, UNID0 and IBRD, in attempting to stimulate 
rational investments in the industry, to improve the system 
supplying basic information for both marketing and commitment of 
capital to the industry. It has provided technical assistance 
through the TVA and more recently through the International 
Fertilizer Development Center - IFDC. A major effort in this 
field was a preliminary survey of resource development and use 
potential in West Africa which is leading to specific development 
projects. IFDC is involved in many smaller projects which in the 
aggregate can be expected to have a significant impact on both 
investment decisions and on production from existing units. 

Although the U.S. Government is not directly involved in partner- 
ships between U.S. and LDC producers, it has encouraged joint 
participation; for example, AGRIC0 in the Fauji project in Pakistan, 
More recently the Cooperative League U.S.A. has been exploring 
provision of a marketing service to Latin American countries. 

The U.S. has participated regularly in the FA0 Commission on 
Fertilizers, the FA0 Fertilizer Industry Advisory Committee and 
most recently, through TVA and its support of IFDC in the Consulta- 
tion on the Fertilizer Industry. 

The U.S. has long had rigorous enforcement of quality standards 
for the fertilizer industry through individual state laws. A 
concerted effort has been launched to increase the reliability 
of reporting and to achieve uniformity in these standards. 
Adequate quality control methods are available for almost all 
products. In this regard AID with TVA assistance is revising its 
model specifications for fertilizers to ensure both good product 
quality and permit the broadest possible competition among legiti- 
mate suppliers. These specifications are suitable for either 
fertilizer purchase or as product specifications for factory 
design. 



28 



The U.S. interest is not limited to chemical fertilizers. Within 
the past two years AID has committed $2,684,000 for research on 
biological nitrogen fixation under tropical conditions. Another 
$233,000 is programmed for FY 1977. Intensive projects are under- 
way at the University of Florida and the University of Hawaii 
while the USDA is coordinating a number of smaller activities 
which build on special skills throughout the U.S. 

As a major step to improve the transfer of knowledge about 
fertilizers and their production, the U.S. through AID and Canada 
launched the International Fertilizer Development Center - IFDC. 
Since its incorporation in October 1974 the IFDC has brought 
together a staff of 47, including 26 highly qualified professionals 
Its staff includes nationals from 10 countries. In support of the 
fledgling Center the U.S. has contributed $10.7 million, $5.7 of 
which is for basic buildings and equipment. Since its founding 
the IFDC has furnished technical assistance to more than 20 
countries and cooperated actively with the World Bank Group, UNDP, 
and ESCAP. 



29 



Resolution IV: Food and Agricultural Research, Extension and Training 



This resolution emphasizes the need to increase agricultural research 
training and extension programs. It also emphasizes the need for 
linkages among national and international research programs. 

In particular, Recommendations 1 through '9 spell out the fields in 
which international regional and national research should be de- 
veloped, and the results exchanged through various "linkages". 
Among the areas mentioned for strengthening and intensification of 
efforts are maximizing production of all food crops and live-stock 
through improved water development; better utilization of land, 
water and other resources; opening up of new lands; and development 
of non-conventional as well as traditional sources for raising of 
nutritional levels. Extensive efforts should also be made to in- 
crease productivity and reduce costs by such developments as solar 
and geophysical energy, plant introduction and genetic breeding." 
Recommendations were also made on the need for research relating 
to ecological impact of various forces including climatic, and the 
importance of applied research to specific farming systems. 

Recommendation No. 9 contains some proposals for specific actions: 

(1) That FAO undertake collection, dissemination of current 
research, results of research already underway and that resources 

be made available to permit exchange of experience between different 
centers; 

(2) That the resources of CGIAR (Consultative Group on Inter- 
national Agricultural Research) co-sponsored by FAO, UNDP and World 
Bank be increased in order to enable it to strengthen and complement 
the work of international and national institutions and the centers; 
and 

(3) That adaptive research and cooperative efforts be made 
at all levels to strengthen specific areas and techniques of 
research. 



30 



A number of important tilings have taken place within the past year 
which are directly supportive of this resolution: 

1 . Title XII (Amendment to the Foreign Assistance Act) 

Through Title XII, we have launched a broad program to use the vast 
resources of our agricultural college and universities in solving 
worldwide food and nutrition problems. While AID. has long and 
successfully used the expertise of U.S. universities in development 
programs, the new authorization will permit more systematic and 
longer-term application of scientific and technological expertise 
on agricultural development problems. The new approach aims to 
encourage our agricultural universities to integrate their over- 
seas and domestic programs, extending the borders of the univer- 
sities beyond the state and beyond the nation. 

The first major steps are being taken to implement Title XII. 
The President has named an outstanding group of noted agriculturists 
to the Board for International Food and Agricultural Development, 
authorized by Title XII. The Board held its first meeting in 
October 1976 and is meeting monthly. Extensive coordinated back- 
ground work by U.S. university and AID representatives greatly 
facilitated deliberations of the Board. Rapid progress is expected 
in working out arrangements whereby U.S. institutions can more 
fully participate in the development and implementation of programs 
designed to meet broad-based research needs of developing countries, 
as well as of those directed to specific country research and de- 
velopment priorities in food and nutrition. 

Implementation of provisions under Title XII will involve careful 
analysis of how U.S. institutions can most effectively link with 
LDC R and D institutions, and with the international agricultural 
research centers. We and other technical assistance organizations - 
particularly through the mechanism of the Consultative Group on 
International Agricultural Research (CGIAR) - are seeking and find- 
ing ways to better contribute to worldwide agricultural R and D 
networks. A major consideration is how best to capitalize in 
agricultural R and D in meeting developing country needs. 



31 



2. The National Academy of Sciences' Study on Food and Nutrition 

This important study, financed in part, by AID, will be very useful 
in providing guidelines for the role of the U.S. in meeting the food 
and nutrition problems of the countries of the developing world. 
Emphasis is directed to helping these countries to help themselves. 
An Interim Report of this study was released in 1976; the full report 
is scheduled to be released about mid-1977. 

3. The International Agricultural Research Centers 

In 1975 about 30 CGIAR members contributed a total of approximately 
$47.5 million to these centers and associated activities. The 
corresponding figure for 1976 is about $62.5 million; the expected 
amount for 1977 is some $78 million. The U.S., through AID, con- 
tributes up to 25% of these total requirements. The work of the 
centers addresses the major food sources and main agricultural regions 
of the developing world. Increasing emphasis is being placed on 
the small, disadvantaged farmer who requires, for adoption, a low- 
cost technology that takes into account the constraints of capital 
and production inputs. In particular, mention is made of the newest 
of the centers - ICARDA (International Center for Agricultural. 
Research in the Arid Areas) - which addresses needs of farmers in 
the more marginal agricultural regions of the developing world. 

In 1976 we participated in a comprehensive review of the CGIAR 
system with a view to assessment of the nature, scope and management 
of activities for the next 3-5 years. The Review Report strongly 
affirmed the importance of the CGIAR and the activities supported 
by it. It called for their continuance for the foreseeable future; 
for a three-year period of consolidation during which no major new 
financial obligations should be incurred; and for more effective 
linkages of the centers with national agricultural programs, on 
the one hand, and with advanced research institutions (e.g., in 
the U.S.) for supportive research, on the other. The Report was, 
in principle, supported by all members. 



32 



4. Farming systems for the Small Operator 

If we are to help the small farmer in the developing countries, we 
must understand him and his overall agricultural enterprise. This 
is a time-consuming and complex assignment, which perhaps explains 
why we and other technical assistance organizations have tended to 
avoid or postpone it. We have responded to the Congressional mandate 
to better address our attention to this large, important and relatively 
neglected segment of the rural population in the LDCs . Fortunately, 
the CGLAR shares this view, so we find the international centers 
giving greater attention to the needs of the small farmers. 

A growing number of AID-supported country-level farming systems 
R and D projects are primarily concerned with small farmers. The 
Agency, at the same time, is attempting to identify common denomi- 
nator aspects of farming systems of small operators that can serve 
as " 
appl 
spec 
systems' production technology. 



tor aspects of farming systems of small operators that can serve 
a basis for research on methodology that could have widespread 
Dlication. This is important in view of the recognized site- 
jcificity of the strictly applied aspects of small farming 



5. Low-Input Technology 

AID, both through support to U.S. institutions and to international 
centers, is focusing on development of technology that takes into 
consideration capital and input constraints of poor farmers in the 
developing countries. The following examples are illustrative of 
initiatives taken, or further emphasized, subsequent to the World 
Food Conference: 

- Biological fixation of nitrogen. Research is underway with 
U.S. universities (e.g., Hawaii and Florida) to determine 
how farmers can more effectively make use of this low-cost" 
nitrogen for increased yields of food crops. The U.S.D.A. 
is assisting us in identifying problems and scientists to 
broaden the scope of this work. Modest support is being 
given for work to explore the feasibility of biological 
fixation of nitrogen in non-leguminous food crops such as 
the major cereals. 



33 



- Testing of Potential New Varieties of Crops under low- 
input/Stress Conditions. Work on important crops such as 
wheat, barley and sorghum is being conscientiously 
oriented in order to identify materials that perform in 

a superior manner under stress conditions. For example, 
barley and sorghum materials are being screened for 
tolerance to drought and heat. The international center 
for maize and wheat (CIMMYT) has been encouraged by the 
CGIAR to consider ways in which more experimental materials 
can be tested systematically under low-input (e.g., low 
level of fertilizer) conditions. 

- Development of more effective fertilizers and fertilizer 

use practices. The new International Fertilizer Development 
Center (IFDC) is expanding its program of research and 
technical assistance. We are encouraged by the growing 
recognition of the important role of IFDC as reflected in 
the recent decision of the CGIAR to nominate three members 
of the Board. The work at the International Rice Research 
Institute (IRRI) on more effective use of fertilizers 
through the "mudball" technique illustrates a kind of 
unsophisticated technology that could have important im- 
plications for small rice farmers who are severely 
restricted in the amount of fertilizer they can purchase. 

- Aquaculture and Fisheries. AID'S recently established 
Division of Aquaculture and Fisheries provides a basis 
for substantially increased research, development, and 
training directed to the needs of aquaculture and artisanal 
fishery in the developing countries. 

6. CARIS 

AID has helped support the development of CARIS (Current Agricultural 
Research Information Services) through FAO. Fao is expected to assume 
the funding of CARIS beginning in 1978. CARIS seeks to establish an 
international information system to collect, process, and disseminate 
data on research institutions, workers, and programs. CARIS will link 
with national research information services. 



80-579 O - 77 



34 
Resolution V: Policies and Measures to Improve Nutrition 



Recommendations 1 and 2 of the Resolution relate to the need 
for integrated food and nutrition plans and policies designed 
to reduce hunger and malnutrition. As one means of imple- 
menting this objective, FAO was requested, in cooperation with 
the other organizations in the UN system (WHO, UNICEF, WFP, 
World Bank, and UNESCO) to prepare a project proposal for 
assisting governments to develop intersectoral food and nutri- 
tion plans. FAO was also requested (Recommendation No. 10) to 
make an inventory of vegetable food resources, other than 
cereals, and- to study the possibility of increasing their 
production and consumption especially in the areas where mal- 
nutrition is widespread. FAO, WHO and UNICEF were requested 
(Recommendation No. 12) to expand their monitoring of food 
contamination, and to establish a global nutrition surveillance 
system to provide information on factors affecting food con- 
sumption and nutritional status (Recommendation No. 13). 

Most of the other recommendations deal with specific components 
of nutrition planning. These relate, inter alia, to measures 
for national governments to take with respect to food for 
vulnerable groups including encouragement of breast-feeding and 
changes in weaning practices (Recommendation No. 6); nutrition 
education (Recommendation No. 4); health, and related social 
services for those suffering from protein malnutrition 
(Recommendation No. 5); food supply for emergencies (Recommend- 
ation No. 8); food fortification through meeting specific 
nutrient deficiencies (Recommendation No. 9); consumer education 
(Recommendation No. 11); establishment, by governments, of 
applied research in specific nutrition fields (Recommendation 
No. 14); association of non-government organizations with 
national programs (Recommendation No. 15) and improvement of the 
nutritional and educational status of women (Recommendation No. 16) 

The United States Government has been working for many years 
toward achievement of the same nutritional objectives as those 
of the World Food Conference. Since the Conference, the U.S. 
has accorded even higher priority toward these objectives, both 
through U.S. bilateral assistance programs and as a member of 
the international organizations in the UN System. 

1. The U.S. Bilateral Program 

While primary U.S. Government responsibility for follow-up on the 
Nutrition Resolution of the World Food Conference per se lies with 



35 



the Offices of Nutrition and Food for Peace in the Agency for 
International Development, there are numerous agencies and 
offices of the Government whose actions have an immediate or 
potential effect on nutritional well-being overseas. The con- 
sumption pattern of populations in low income countries may 
be affected, in some cases significantly, by U.S. policies 
relating to concessional food sales, exports and imports, and 
grain reserves. Nutritional status also may be affected by 
U.S. assistance to these countries in the areas of agri- 
culture, health, population, education, and rural and urban 
development. It should be recognized that policies and 
decisions in these other areas may have an equal or greater 
effect on nutritional well-being than those carried out by the 
AID Offices of Nutrition and Food for Peace. Resolution V, 
however, as far as the U.S. Government is involved, pertains 
primarily to the activities of these two offices, and of 
relevant USAID Mission programs overseas. 

The AID Nutrition Strategy as a whole is oriented along the 
lines of our Congressional Mandate. The strategy is based 
on the premise that problems of hunger and malnutrition are 
concentrated in the "poor majority" in LDC's, who have neither 
been included in the development process nor shared significantly 
in its benefits. The plight of the 460 million chronically mal- 
nourished people, half of them children, has eased somewhat 
since the World Food Conference but is still critical. 

The over-riding objective of the AID Nutrition Strategy is to 
assist communities and governments and to work with external 
assistance agencies in meeting the basic needs of this group 
and reducing their deprivation. From the perspective of the 
poor throughout the world, the most basic needs relate to 
survival, the keys to which are nutrition and health. 

The U.S. response to these recommendations is threefold: 

First, AID recognized that external assistance agencies cannot 
and should not play a design-directive role in the development 
and implementation of specific interventions to meet the nu- 
tritional needs of populations in other countries; that responsi- 
bility for these and other development activities lies at the 
national and sub-national levels of the governments of these 
countries. AID also recognizes that many governments are not 



56 



yet fully committed, for a variety of reasons, to the goal 
of improving the nutritional well-being of their poor 
majority. Accordingly, AID's first objective in responding 
to Resolution V is to increase LDC governmental awareness 
of malnutrition, to increase governmental commitment to 
nutritional improvement, to provide information on the kinds 
of interventions available, and to suggest planning contexts 
for such decision-making . 

Toward this objective, AID has been providing assistance to 
numerous governments in the development of intersectoral 
nutrition plans at the community, sub-national and national 
levels as well as undertaking pioneering work in the develop- 
ment and application of such methodologies. AID can make a 
further contribution by insuring that new U.S. -assisted programs 
in health, agriculture and other relevant sectors emphasize 
the nutritional impact of these programs particularly among the 
poorest. (See objective 3). 

A key instrument in the preparation of nutritional plans is 
the nutrition survey. These surveys play a multiple role. 
They identify the number, regional distribution and character- 
istics of the malnourished groups. They provide clues to the 
causes of malnutrition as well as base line data that can sub- 
sequently be used to evaluate the impact of nutrition inter- 
ventions. Finally, they serve to sensitize governments to 
the existence and importance of the malnutrition problem which 
often reflects non-participatory patterns of development. 

AID has already financed nutrition surveys in six countries, 
and will finance nutrition surveys in five additional 
countries during FY 1977. AID also plans to finance a major 
study on the functional implications of malnutrition 
(Recommendation No. 1 of the Nutrition Overview Study Team of 
the National Academy of Sciences' World Food and Nutrition 
Study, July 1976) to translate the scientific measurements in 
such surveys Into long term health effects, productivity and 
behavioral consequences which can be understood by decision 
makers. Such sensitization ideally should strengthen the 
hands of governments interested in direct nutrition interventions 
and more equity-oriented patterns of development. 

The second AID objective with regard to Resolution V follow-up 
is to assist low income countries in the analysis, design, 
promotion, implementation and evaluation of direct nutrition 
interventions aimed at poor and vulnerable population groups" . 



37 



AID, primarily through its overseas missions, has been working 
actively in the area of direct interventions for the past 10 
years, providing technical, financial and food assistance, 
appropriate equipment and, more recently, soft loan financing 
to governments interested in launching such programs. In 
addition to continuation of the Title II food grants (princi- 
pally through U.S. Voluntary Agencies), the overall AID strategy 
with respect to this second objective is two-fold. First, AID 
is systematically examining the relative costs and effectiveness 
of a range of interventions which will affect the nutritionally 
most vulnerable groups. Rather extensive AID-financed operations 
research is underway in the areas of nutrition education 
(Recommendation No. 4), child feeding (Recommendation No. 7), and 
food fortification (Recommendation No. 9) to determine what does 
and does not work. This will help to refine intervention approaches 
and by disseminating this information nutrition planners will be 
able to program more effectively. Most of the interventions being 
examined are aimed primarily at the most vulnerable population 
groups, pregnant and lactating women and children in the first two 
years of life. Such research, in general, is probably the most 
important category of applied nutrition research (Recommendation 
No. 14) that can be undertaken at present in low income countries. 
This research, while very broadly defined, is highly operational 
in content, and carried out within the context of each country's 
own programs, priorities, and capacities. 

The second aspect concerns training. Past experience suggests 
that even in LDC's which are committed to programs to combat 
malnutrition, implementation of nutrition intervention efforts 
suffers from the endemic management problems of underdevelopment 
and often ceases once external assistance is withdrawn. During 
the past three years, AID has attempted to respond to 
this need by financing and encouraging considerable training of 
middle and senior level government officials in nutrition planning. 
During the coming years AID will continue such training but in the 
low income countries themselves to permit direct exposure to the 
malnutrition problem and its key determinants. In addition, in 
order to support village level identification and care of mothers 
and children at risk, AID, through its Offices of Nutrition and 
Health, hopes to become actively involved in the process of train- 
ing village workers in public health and nutrition extension 
services. 

In addition to this systematic program of research, training and 
assistance to governments in developing sensible packages of inter- 



38 



ventions, AID has selected a few categories of nutrition 
interventions which it plans to support more specifically 
in the context of the particular needs and conditions of 
individual countries. 

One of these intervention approaches is village-level 
identification and care of pregnant and lactating mothers 
and children at risk. This involves selection and minimal 
training of village residents responsible to the community 
who then provide simple nutrition, health and family plan- 
ning services. The most important nutrition component in- 
volves the periodic measurement of height and weight of 
young children to identify malnutrition and the provision 
of education and food supplementation as required. Follow- 
up care can be targeted for children identified in this 
fashion as being nutritionally at risk. Such a program 
will require major attention to low-level training, and 
AID hopes to take a- leadership role in the organization of 
such training. This village level intervention, if success- 
ful, will also generate an ongoing body of data (from the 
height/weight charts kept for each child) which can serve 
as the basis for national and sub-national nutrition sur- 
veillance systems (Recommendation No. 13). In most cases 
this would be preferable to independent nutritional status 
surveillance exercises which, when there are no response 
mechanisms, have the potential of becoming ends in them- 
selves. 

The second category of interventions to be emphasized 
relates to vitamin A deficiency and iron deficiency anemia 
(Recommendation No. 9). These problems, specifically identi- 
fied by the U.S. Secretary of State in his opening address 
to the World Food Conference, follow protein-calorie mal- 
nutrition in terms of their consequences, but are considerably 
easier to address. AID is pursuing a number of different 
interventions—ranging from nutrition education to food 
fortification— 1n an effort to develop appropriate low cost 
alternatives for individual countries. In the area of 
fortification, AID has carried out some of the pioneering 
research on non-cereal carriers which might permit more 
complete coverage of low income populations than would cereal 
fortification. AID has financed research on the feasibility 
of fortification of sugar, tea, salt and flavoring agents and 
during FY '77 will extend this research to provide countries 
with a reasonably complete matrix of fortification possibilities 
using unconventional carriers. 



39 



AID has taken the initiative in organizing an international 
consortium of public and private agencies interested and 
involved in addressing the problem of vitamin A deficiency. 
The group is comprised of the UN Agencies specifically con- 
cerned - WHO, UNICEF, and FAO, private voluntary agencies, 
and other bilateral donors. The consortium will coordinate 
a worldwide attack on the problem, with AID assisting operations 
of the consortium and sponsoring appropriate portions of 
programs recommended by the group. A worldwide conference 
cosponsored by AID and WHO was held in Jarkarta several weeks 
after the World Food Conference as well as other organization 
meetings in Washington, and the consortium is now operational. 
In addition, AID has approved multi-year projects with 
activity underway in Haiti, Guatemala, Indonesia, Sri Lanka 
and El Salvador. 

A similar international consortium has been formed to conduct 
a campaign against iron deficiency anemia. AID and WHO co- 
sponsored an international conference to establish guidelines 
for carrying out programs to combat anemia which resulted in 
the approval of a recent multi-year project. AID is budgeting 
a total of $10 million to be spent on vitamin A and iron 
projects over the next five years to support these efforts. 

Another area of intervention in which AID is particularly 
interested relates to breast feeding and, more broadly, to 
changes in weaning practices (Recommendation No. 6). With 
the active support and encouragement of groups such as the Inter- 
religious Task Force on U.S. Food Policy, AID has undertaken 
two research projects and is seeking to develop a strategy 
capable of having some impact on breast feeding and weaning 
practices including the early provision of supplementary solid 
food. While we have considerable knowledge about the deleteri- 
ous effects of poor weaning practices we know relatively little 
about affecting such practices. Accordingly major attention 
in FY '77 will be directed at meeting this particular knowledge 
gap, specifically in the context of the needs and responsi- 
bilities and participation of women in the development process. 
In this effort AID will call upon the Committee on International 
Nutrition of the U.S. Food and Nutrition Board in the National 
Academy of Sciences. 

One important means of addressing several of these priorities 
lies in the area of appropriate technology. Clearly, the U.S. 
has an enormous comparative advantage in the area of technological 
research and development. In the field of nutrition, however, the 



40 



scope for technology transfer capable of affecting the poor 
majority is limited. In the past, most of these technologies 
have produced raw materials or foods largely beyond the 
purchasing power of the poor. In addition they tended to be 
capital rather than labor intensive and accordingly were often 
inappropriate in capital -short, labor-surplus economies. There 
is, however, a category of intermediate food technology in 
nutrition which often is appropriate to the realities of low 
income countries and which may provide low cost solutions 
to particular problems. One example is low cost Extrusion 
cookers, developed in the U.S. to process soy beans for feed 
on the farm or in small feed mills but also capable of pro- 
ducing pre-cooked easily digestible foods for young children. 
AID in cooperation with USDA is evaluating the utility of 
these low cost extruders under actual field conditions in LDC's. 

The third major objective with respect to Resolution V is to 
determine the consumption/nutrition implications of policies 
and programs in other development sectors . While the nutrition 
community has done rather well in its attempts to pursue and 
learn about direct nutrition interventions, we have done far 
less well in identifying the nutritional effects of other 
development policies and programs. And yet the consumption 
and nutritional effects of agricultural price and land use 
policies, of health care and population programs, of rural 
employment programs and of food trade policies are often more 
significant than direct interventions. The nutrition community 
has a responsibility to identify these effects and assure that 
they are considered in the decision-making process, In many 
cases, the mere identification of projected consumption effects, 
with all that this implies politically, will have an important 
effect on the decision. This process represents a crucial and 
the most neglected component of nutrition planning advocated 
by Recommendations 1 and 2. 

During FY '77, AID plans to develop and establish in at least 
one country, a relatively simple system to permit translation 
of the projected income and/or price effects of development 
policies or programs into projected consumption effects, dis- 
aggregated by income and age groups. This will provide some 
insight into the nutritional effect of such policy changes. 
AID has also initiated a systematic effort to determine the 
nutritional and health benefits of water supply systems, 
(Recommendation No. 5), subsidized consumption systems and 
health systems. 



41 



Food aid cuts across many of the issues discussed above. 
The U.S. PL 480 Title II program has been undergoing con- 
siderably reorientation over the past decade in the 
direction of increased nutritional impact. School feeding 
is gradually being replaced by pre-school feeding with 
increased efforts directed at children in the poorest families 
in the critical 6-24 month age group, and the nutritional 
value of Title II commodities has been improved. Beginning 
in FY '77, in the context of Agencywide disaster planning, 
explicit attention will be given to the nutritional issues 
related to disasters in an effort to permit more effective 
U.S. inputs and also to provide LDC governments with 
assistance in disaster pre-planning. 

While continuing to increase the nutritional effectiveness 
of Title II programs, AID will also begin in FY '77 to 
explore alternative means of increasing the nutritional impact 
of Title I concessional sales sales programs. Title I foods 
already are being used in several countries to support sub- 
sidized consumption systems designed to increase the food 
intake in low income groups, particularly in the cities. 
In Pakistan, the ration system, utilizing PL 480 wheat, in 
part, increases the real income of the lowest income group 
by 10 percent and provides between 9 and 14 percent of their 
caloric needs. AID intends to study similar subsidized con- 
sumption systems in other low income countries in FY '77 and 
'78 as part of a broader examination of the nutritional 
benefits of Title I delivery systems. Such an examination 
will also attempt to identify appropriate administrative 
structures that might permit the expansion of these programs 
into the rural sector. If it can be demonstrated that such 
programs are truly cost effective, or can be made to be cost 
effective with good management, it is likely that LDC's may 
consider such interventions justified irrespective of the 
provision of PL 480 or other external aid. Consideration will 
also be given to the possibility of increased utilization of 
local currencies, loan forgiveness provisions and the inclusion 
of blended foods under Title I for nutritional purposes. 

In contrast to a reasonably active role on the recommendations 
referred to above, AID does not anticipate involvement in 
recommendation 10 (vegetable food resources), recommendation 11 
(consumer education services) or recommendation 12 (food con- 
tamination monitoring program). 



42 



AID will continue to work closely with non-governmental 
organizations (Recommendation 15) in the conduct of its 
programs, and, in addition will continue to provide 
grant support to Such organizations to increase their 
nutrition programming capability. During FY '76, AID 
grants totalling $780,000 were provided to such organizations, 
in FY '77 that figure is expected to rise to $1.2 million. 

Finally AID will make renewed efforts to work in concert with 
international agencies to carry out the word and spirit of 
Resolution V. The work of WHO and FAO is of particular 
importance. Diplomatic as well as technical/professional 
channels are being used to encourage these organizations to 
place greater program stress on activities to combat mal- 
nutrition. AID also will participate actively with other 
U.S. Government departments and offices in exercising the U.S. 
membership responsibilities to the international agencies, 
and will attempt to affect the organization, priority setting, 
and decision making of these agencies in ways which best 
support implementation of Resolution V. 

The foregoing description of AID'S general direction and 
emphasis 'of effort in combatting malnutrition is being 
translated Into country specific operational programs. 
Already 15 of AID'S country assistance programs contain 
specific operational nutrition projects or nutrition com- 
ponents of agriculture or health projects. For example, 
loans to four Central American countries for nutrition 
totalled $32 million in FY 76, and PL 480 Title II resources 
were valued at $313 million. Central funding of AID research 
programs in nutrition increased from a level of $1.4 million 
in 1973 to $5.6 million in 1976, and projects funding of $7.2 
million in 1977 and $10 million in 1978. 



2. Nutrition Activities in the UN System 

Improvement of nutritional levels in the developing countries 
is a primary objective of the FAO, and is important also 1n 
the work of the WFP, WHO, UNICEF, UNESCO and UNDP. There is 
also Increasing Involvement in the field of nutrition by the 
international financing institutions. For example, in 1977 
the World Bank, with strong encouragement from the U.S., will 
finance a nutrition project in Brazil, the first project of 
its kind approved to date. 



43 



Acting under the impetus of the World Food Conference, 
the UN Economic and Social Council, with strong U.S. 
support, set up a sub-committee on nutrition designed 
to stimulate increased nutritional awareness and 
activities througout all the agencies in the UN System. 

The FAO, because of its mandated responsibility to improve 
levels of nutrition, is 1n a position to assume an active 
leadership role in this area.. Unfortunately,_ this leader- 
ship has not been pursued 1n recent years as diligently as 
many- would wish, 1n part because of the relative slowness 
of decision making in international bodies and in part also 
because many of the governments which are members of the FAO 
have attached relatively low priority to nutritional activities 
in the FAO program and budget. The FAO has nevertheless taken 
positive action in a number of nutritional areas: These 
include: 

(1) FAO's assistance with feeding programs, which is 
primarily that of providing training materials and technical 
backstopping, has been adequate. 

(2) .Useful results have also come from the joint FAO/WHO 
food contamination monitoring program. FAO reports that food 
control programs have been initiated in a number of develop- 
ing countries (in Africa in particular) with the assistance of 
UNDP and bilateral donor agencies. Progress was made at the 
international level in the preparation of guidelines for the 
establishment of food control service and the development of 
modem food legislation. This area deserves continued emphasis 
and further progress can be expected. 

(3) With respect to global nutrition surveillance, a meeting 
of a Joint FAO/UNICEF/WHO Expert Committee on the Methodology 
of Nutrition Surveillance was held. This is an area in which 
many practical problems of methodology remain to be worked out 
and tested before a large scale effort would be cost efficient. 
FAO's logical contribution to the total effort would appear to 
be in assessing the adequacy of the supply of nutrients provided 
to a given population by local food production and available 
food supplies. This approach is in fact being taken by FAO. 
This effort is linked to the Food Information and Global Warning 
System; therefore, progress by FAO in this nutrition effort will 
depend on progress in the latter area. 



44 



(4) Leadership within the Nutrition Division of FAO put 
major' emphasis on providing governments with assistance 
in intersectoral food and nutrition planning. Major 
budget increases were proposed in- this area and several 
meetings were held with representatives of other organiza- 
tions and agencies in the UN family and bilateral aid 
agencies to review proposals made by FAO for cooperative 
effort in this area. Many inadequacies were apparent in 
the proposals. These were partially corrected in response 
to suggestions from the U.S. and other countries and from 
other organizations and agencies. Because the early 
proposals from the FAO- secretarial were not well thought 
out, the U.S. urged a slower expansion of funding in this 
area to insure efficient use of funds. This course of 
action 1s being followed by the FAO secretariat. 

(5) Another recommendation of the WFC concerned cooperative 
effort among FAO, WHO, and UNICEF to promote coordinated 
programs 1n applied nutrition research. FAO organized and 
held a meeting 1n 1975 of representatives of FAO, WHO, 
UNESCO, UNICEF, SFC, WFP, UN, UNDP, World Bank, PAG and 
several bilateral aid agencies r and recommendations for 
establishing a coordinated effort were developed. This 
area 1s receiving continued support 1n FAO. One specific 
action undertaken to Improve the effectiveness and cost 
efficiency of FAO's work in applied nutrition is a cooper- 
ative agreement being negotiated between FAO and the Agri- 
cultural Research Service of the U.S. Department of 
Agriculture. This agreement provides for cooperative action, 
with the USDA's Nutrient Data Bank serving FAO as well as the 
United States as a repository and processing center for 

data on the nutritional composition of foods, information 
that is essential to most efforts to improve nutrition. 

Overall, some progress has been made 1n implementing recom- 
mendations of the WFC. With changes that are taking place in 
leadership within the FAO secretariat, further progress can be 
expected, probably at as rapid a rate as would be possible 
without excessive waste of funds. 



45 



Resolution VI - World Soil Charter and Land Capability Assessment 



The Resolution recommends that governments take soil protection and 
conservation measures along vrfth other sound agricultural practices 
to intensity grazing, crop production and bringing new lands into 
production. It also recommends that FAO, UNESCO, UNDP, WHO and other 
interested organizations undertake assessment on lands that can still 
be brought into cultivation, with a view to halting irreversible 
soil degration and also providing a basis for cost estimates for 
agricultural inputs required for restoration of land. The Resolution 
urges FAO to select appropriate ways and means to establish a World 
Soil Charter, as the basis for international cooperation in rational 
use of world land resources. 

FAO and UNESCO are continuing their work on a World Soil Map. It 
could when finished provide an updated and more accurate assessment 
than any existing. 

The World Soil Charter is a European initiative. A draft charter 
was discussed and published by. the Council of Europe in 1973. The 
Charter emphasizes the relationships between national uses of soils 
and water, and international consequences. It proposes international 
agreements and international standards for the prevention of soil 
degradation. The U.S. government has no recent information about 
this project. 

AID has a number of programs (studies, workshops, symposium, etc.) 
that are focused on the development and transference of appropriate 
soil management techniques for both the new land and for lands with 
new and higher intensity for agricultural production. For the 
properly identified (classified) soils the management systems and 
management problems are predictable. Recognition and consideration 
by the developing countries of this fact of response predictability, 
of known -soils will have far reaching effects on the efficient 
utilization of resources and on the possibilities of success or 
failure of individual projects in their overall national agricultural 
programs. AID is strongly promoting the idea of making inventories 
of the soil resources of the developing nations. 






46 



Resolution VII: Scientific Water Management: Irrigation, Drainage 
and Flood Control 

The Resolution recommends urgent action by governments and international 
organizations (FAO, WHO), other international agencies, and governments 
to undertake: 

Climatic, hydrological , irrigation and desert research on 
potential water power, health safety, and related matters; 
surveys and other measures related to ground-water potential; 
flood protection and control; drainage systems and salinity; 
and control of "desert creep". 

The resolution calls on international organizations and governments 
to increase financial resources for these undertakings. It also urges 
governments and international agencies to increase resources for research 
and to make arrangements for meeting energy requirements for irrigation, 
including solar and wind power. It also urges strengthening or initiation 
of research and training in all aspects of technology and water delivery . 
systems. 

The important role of water is agricultural development has been recog- 
nized'by practically all agencies involved with development. Almost 
every country in the world now has some program of identifying and 
quantifying its water resource. 

AID, development banks, and other aid-granting organizations 
are heavily involved in giving assistance to the development 
of irrigation projects. There is a growing trend however, 
to devote more attention to improving existing systems. It 
has been recognized that wasted water in irrigation is not 
only costly but, creates the problems of water-logging and 
sa 1 i ni ty . 

AID's research program in Pakistan is developing techniques 
and guidelines which small farmers can utilize to greatly 
improve the efficiency of use of the water which is in 
the irrigation systems. Other countries, for example, 
Egypt and Sri Lanka, are considering the development of 
similar adaptive research programs which define the water 
management problems and prescribe, through testing, 
. appropriate solutions. 



47 






Another AID research project is exploring the possibility 
of rapidly creating mutations in agricultural plants to 
resolve certain basic environmental constraints such as 
salt, drought and aluminum toxicity in the soils. This 
subject matter will be high-lighted at an International 
Workshop in November 1976. 

AID is testing a hypothesis for agro-technology transferance 
from one tropical region to another based on soil taxonomic 
classification and will cover such subject matters as 
erodibility, efficiency of irrigation, water holding capacity 
and moisture availability. 



48 



Resolution vril: Women and Food 

This Resolution calls on all governments to provide to women in law 
and in fact medical, health, nutrition and other services required for 
nurture and growth of healthy children; 

to include in their national plans provision for education 

and training on an equal basis with men in all aspects of 
food and agricultural production, marketing, distribution, 
credit, consumer and nutrition information; 

to promote equal rights for men and women, in order that 

their energy, talent and ability may be fully utilized with 
men in partnership against world hunger. 

There has been considerable "follow-up" of this Resolution both at the 
United Nations level, and by individual governments, including that 
of the United States. 

The. resolution encompasses recognition of the roles women play in food 
production, its importance to immediate family health and nutrition, and 
the need for specific action on the part of governments to ensure that 
women are integrated in all aspects of decision-making, training, tech- 
nical assistance and services related to food production and utilization 
on an equal basis with men. 

The United Nations has taken a number of important steps relating to this 
Resolution with strong support from the United States. The FAO Council 
in June 1975 adopted a preceaent-setting resolution, "Integration of 
Women in Agricultural and Rural Development and Nutrition Policies." This 
included provisions as well for FAO to ensure equal treatment for women 
and men in recruitment, promotion, etc. within the Organization. WFP,. 
at its 28th Intergovernmental Committee Session, by the FAO Conference 
in September 1975, took similar action. This was strengthened and 
adopted by the FAO Conference in November 1975. FAO and WFP also pro- 
duced comprehensive reports on women and food issues for the Inter- 
national Women's Year Conference in Mexico in mid-1975. Many of the 
findings and recommendations in these reports are included in the World 
Plan of Action and 34 Resolutions adopted by the IWY Conference and 
later unanimously approved by the UN General Assembly. 



49 



In September 1976, another precedent was set by the UN Commission on 
the Status of Women, which, adopted a new section on rural development 
in its Convention to Eliminate Discrimination Against women. This 
convention must be approved By the General Assembly to become binding 
on all member states. Policies and plans of UNDP, UNICEF, WHO and 
others of the UN system during 1975 and 1976 complement this trend. 
The objectives of these actions were essentially to (a) ameliorate 
the conditions and enhance the rewards for women in rural areas and 
(b) ensure that women are provided Knowledge and resources needed to 
improve family living conditions and contributions to food production 
and related agricultural activities. 

Other donors have taken a more active interest since 1975 in the roles 
and status of women, particularly rural women, and have recognized 
the dual need for integration of women in agricultural development as 
well. as provisions for recruitment and promotion of women to senior 
posts within their own organizations. In the past few months, most 
Western donors have initiated special appointments of women and task 
forces to focus on women in development, with particular emphasis on 
rural women. Their program concepts are similar to those .of our foreign 
aid program. 

AID is actively pursuing similar goals in accordance with Congressional 
mandates of 1973, 1974 and 1975 foreign assistance legislation, requir- 
ing that all bilateral and multilateral programs pay particular attention 
to the integration of women in their national economies. For example: 

— Since 1974, AID has had a Coordinator for Women in Development, 
responsible directly to the AID Administrator. The Office 
monitors and guides implementation and provides catalytic 
assistance to the integration of women in the development 
process, with particular emphasis on the agricultural and 
rural development sectors. The Office has provided more 

than $500,000 to date in support of seminars and conferences 
in the US and abroad, baseline research in rural areas of 
four countries, and special projects in two others, plus 
development and distribution of training materials. 

— AID has a world-wide liaison system consisting of personnel 
especially assigned in field, missions and in AID/W Offices 
and Bureaus to assist in the design, implementation and 
evaluation of projects. These and other personnel in 
Washington provide the nucleus of the review committee of 
experts serving the Coordinator's Office, principally on 
matters of special research. 



50 



At the time of the previous report, AID had Initiated 
projects- with, specific emphasis on women in food and 
nutrition, principally in African countries, and had 
visited 11 Agency Missions in North Africa, the Middle 
and Far East, and Central America to assist with the 
integration of women i-n the rural development programs. 
The number of countries reporting projects has risen 
to 37, and there are now regional projects in all areas. 
The focus is mainly on rural development, nutrition, 
family planning, health and agricultural -related 
activities. 

As a result of the AID-instigated seminer on Women in 
Development for donor representatives to the OECD 
Development Assistance Committee in October 1975, at 
least six donor country foreign aid programs have 
structured coordinating units or task forces to serve 
similarly to AID r s Coordinator's Office. 

AID personnel served on Delegations to the Inter-American 
Commission on Women, Organization of American States, and 
the UN Commission on the Status of Women session in 1976. 
These meetings resulted respectively in a Regional Plan 
of Action for Latin America emphasizing rural development, 
and insertion of a special section on women in rural 
development in the new Convention to Eliminate Discrimina- 
tion Against Women. These were precedent-setting actions. 

AID is now employing a computerized data bank and retrieval 
system to demonstrate special emphasis on women in develop- 
ment, with delineation of rural development, nutrition and 
population programs focused principally on women. 

AID is also working with the UN Research Institute in 
Social Development to produce special indicators for 
women in development and for rural development in general. 



51 



Resolution TX: Achievement of a Desirable Balance Between Population 
arid Food Supply 

The Resolution calls on all governments and people everywhere to under- 
take, as a short-range goal, the growing and equitable distribution of 
sufficient food to "all human beings" for an adequate diet; and also to 
support, as a longer-term solution, rational population policies en- 
suring to couples the right to determine the number and spacing of 
births, freely and responsibly, in accordance with needs and within 
a development strategy. 

In this resolution, the Food Conference gave worldwide recognition to 
the critical relationship between population and food. Over the past 
decade much has been accomplished to help achieve a desirable balance 
between food supply and population through the development of population 
policies and adoption of family planning practices to reduce population 
growth rates: 

— The World Population Year, the World Population Conference, 
the World Population PTan of Action approved by 136 nations 
and calling for provision of family planning information 
and means to all individuals and couples, and the interna- 
tional Women's Year Conference, have greatly increased 
awareness of population problems and the acceptability of 
action programs; 

— Most nations have removed restrictions on provision of 
family planning information and means to their populations, 
and more than 50 nations now have national family planning 
programs — many of them far advanced. 

— Rapid improvement in fertility control technology has been 
accomplished during the last several years with increasing 
availability of colored and lubricated condoms, lower dose 
oral contraceptives with iron tablets, and simplified 
techniques of female sterilization and pregnancy termina- 
tion which now permit such surgery to be performed as an 
out-patient procedure under local anesthesia. 

— Family planning programs have already largely accomplished 
their purpose in a number of developing countries — 
Singapore, Hong Kong, Taiwan - where information and the 



52 



most effective means have been made generally available 
and where birth rates are now approximate 20 per 1000. 
In Korea bilateral USAID population program assistance 
was completed in fiscal 1975; 

In nine additional developing countries family planning 
education and service programs have reached the point 
where termination of USAID bilateral population program 
assistance could be possible within several years - 
Philippines, Thailand, Indonesia, Tunisia, Colombia, 
Costa. Rica, El Salvador, Jamaica and Panama. 

The annual increment in world population — the product 
of the world population x its growth rate — was approxi- 
mately 66 million in 1965 and 63 million in 1974. But 
the peak annual population increment occurred about 1970, 
with approximately 70 million people added that year. 
An accelerating downward trend is now underway. 

Through FY 1977, the U.S. through' AID will have provided 
more than $1 billion for international population programs 
assistance — more than half of all such assistance to the 
developing countries. These AID- resources have been applied 
as follows: 

$142 million to the the United Nations Fund for Population 
Activities, approximately 45% of UN population resources; 

$82 million to the International Planned Parenthood 
Federation, approximately 36% of IPPF resources; 

$105 million to four other action intermediaries ~ 
Pathfinder Fund, Population Council, Family Planning 
International Assistance, and the Association for 
Voluntary Sterilization; 

$50 million for research and development of new and 
improved means of fertility control; 

$160 million for purchase and transportation of contra- 
ceptives and clinical supplies; 



53 



$261 million for support of family planning programs 
in 43 countries on a bilateral basis (exclusive of 
contraceptives). Foremost recipients of USAID 
assistance have been: 



Philippines 


Tunisia 


India 


Korea 


Indonesia 


Afghanistan 


Pakistan 


Ecuador 


Thailand 


Ghana 



$170 million for development of more adequate demographic 
data, training, research on determinants and consequences 
of fertility, policy development, and evaluation; 

$34 million for administration of the program. 

In Bangladesh, some 19,000 family planning workers, the training 
of whom was financed in part by AID are providing family 
planning information and contraceptives. . The Government of 
Bangladesh plans to increase that number to 30,000 workers 
shortly. A national commercial network for distributing con- 
traceptives has started through an American organization under 
AID contract. 

In Pakistan , a national effort aimed primarily at rural illiterate 
couples is receiving major support from AID. About 4,200 
family planning teams cover 75% of the population of Pakistan. 
The Government of Pakistan is considering mass production of 
condoms in the near future. The GOP is in the midst of an 
ambitious effort to energize the program and motivate couples 
to practice family planning. 

In Philippines, largely as a result of AID assistance, 2,400 
clinics now provide full family planning services and recruit 
about 54,000 new acceptors each month. The program emphasizes 
increasing services to rural areas, promoting commercial dis- 
tribution of contraceptives, and expanding sterilization 
services. 



54 



The Government of Indonesia Family Planning Program, working 
basically through 2,675 clinics and with support from AID 
and other donors has been able to achieve a level of new 
acceptors of family planning of 6.4 million of whom 482 are 
continuing acceptors. In 10 of the remaining 21 outer island 
provinces not covered by, the program, the government moved 
to bring in family planning services beginning in 1975. At 
last report the program was moving well. 

While the clinic-based program seemed to be relatively 
successful, to reduce the danger of possible program slow- 
down, which seems to be inherent in clinic-based programs, 
about 19 months ago the Indonesians undertook a study leading 
to the establishment of village contraceptive delivery 
centers. As of March 1976 some 3,400 centers had been es- 
tablished. The GOI is looking to a further and rapid 
expansion of the village distribution center concept. 



55 



Resolution X: Pesticides 



This Resolution called on FAO, other international organizations 
and member governments and industry to review pesticide supply/demand 
information, investment requirements, regulatory procedures, and 
alternate methods of pest control. Specifically, the Resolution called 
on FAO, in cooperation with UNEP, WHO, UNIDO, member governments and 
industry, to convene on an urgent basis an ad hoc consultation to 
recommend ways and means to give effect to this Resolution. 

This ad hoc consultation was held in Rome from April 7 to 11 , 1975, 
and our AID/W representative was a member of the U.S. delegation. The 
consultation elaborated upon Resolution X of the World Food Congress 
and prepared 14 specific resolutions. Of these resolutions the first 
three on (i) training in efficient, safe and effective use of pesticides, 
(ii) efficient and safe application of pesticides and (iii) improved 
plant protection services, particularly in developing countries have 
been closely followed by AID in designing and implementing technical 
assistance programs to LDCs. 



In 1976 



AID continued to contract with University of California, 
Berkeley for expert- advice on integrated pest management. 
Pest and pesticide management training , LDC pesticide 
residue laboratory support and regulatory procedure 
standardization are ongoing. 

An Environment Impact Statement of AID pesticide 
activities, is being undertaken. The resultant document 
will critically assess the past, present, and future 
AID pesticide related programs and establish guidelines 
to minimize hazards and maximize benefits. 

AID maintains liaison with FAO, UNEP, WHO, other inter- 
national organizations and member governments on pesticide 
and pest management meetings and programs. Assistance in 
developing national programs in various pesticide 
activities such as use, regulation, residue monitoring, 
and disposal is provided. 



56 



"For example, a pesticide management workshop was scheduled 
for Guatemala Cfty from February 2 through 7, 1976 
(suspended by the earthquake of 3-4 February) and wi'll be 
rescheduled, at the request of government representatives, 
at an appropriate time. Representatives of the project 
also participated and assisted in a similar workshop 
sponsored by the Far East Regional Office of WHO in the 
Philippines from September 6 to 10, 1976. Of particular 
importance, is a report prepared by the Project on "The 
Agromedical Approach to Pesticide Management" for the use 
of professional workers and administrators in agriculture 
and health in developing countries. 

AID also continues to contract with a number of other 
U.S. universities with the objective of developing ways 
and means of increasing good crop productivity in LDCs. 
These projects include the improvement of the genetic 
resistance of sorghum to major diseases and insect pests 
(Texas A&M University), disease and insect control in 
food legumes (University of Puerto Rico), development of 
integrated pest management programs for the control of 
root-knot nematodes (North Carolina State University), 
and development of weed control systems for LDCs (Oregon 
State University) . 

AID plans to send a delegation to an FAO expert consulta- 
tion in December 1976. 

Finally, AID is continuing its contract (initiated in 
FY 1976) with the Department of the Interior to develop 
methods other than the use of broad spectrum poisons for 
the control of noxious vertebrate pests including grain- 
eating birds and rodents in LDCs." 



57 



Resolution XI: Programme for the Control of African Animal Trypanosomiasis 

This Resolution recommends that FAO in cooperation with other governments 
and organizations launch a long-term program for the control of African 
animal trypanosomiasis. 

The Resolution also called for establishment within FAO of a small 
coordinating unit for the first phase of the program concerned with train- 
ing, pilot field control projects and applied research, and to "mobilize 
funds and services'* for this program. 

Trypanosomiasis and its vector - the Tsetse fly - constitute a major 
barrier to agricultural and livestock development in Africa. 

As a result of the Recommendation XT of the World Food Conference FAO 
has developed a 40 year plan to Control Trypanosomiasis in Africa. 
Often at an international meeting on the subject in Ghana in December 
1975, FAO announced a preliminary 5 year phase of the operation which 
provides for* an FAO coordinating unit, a review of pesticide formula- 
tion and application, and the development of professional and technical ■ 
workers training centers. A major control program sponsored by African 
nations and other donor agencies. 

FAO has announced a technical meeting of participating countries and 
major donor agencies for the purpose of coordinating all control pro- 
grams. This meeting originally scheduled for late February or early 
March 1977 has been postponed until fall 1977 in order to develop more 
effective participation and planning. 

AID is carrying out a research project in Tanzania on a biological 
control system for controlling the Tsetse fly, the vector of 
trypanosomiasis. 

Recently the Agency has inaugurated an extensive tsetse fly control 
program in Mali, West Africa. 

AID is also cooperating yery closely with FAO and other donor agencies 
in coordination of country funded trypanosomiasis control activities. 
This activity resulted from an International Symposium on Trypanosomiasis 
control held in London in August 1976. 



58 



Resolution XII: Seed Industry Development 

This Resolution recommends that governments take measures to promote 
the seed industry and recommends that FAO strengthen its seed industry 
development program. It urges governments of developing countries to 
make short and long-term plans including commitments of manpower, in- 
stitutional and financial resources for development of the seed in- 
dustry; it also suggest governments and other parties to take measures 
at all stages of production, distribution, and marketing to insure 
quality control of seeds. It recommends strengthening of FAO's Seed 
Industry Development Program to provide training in technical and 
management aspects of the seed industry for the benefit of national 
seed production and utilization efforts. 

— AID has initiated discussions with FAO on means to involve 
the commercial seed industry of the U.S. and other developed 
countries in the establishment and strengthening of viable 
seed industries in developing countries. Prospects appear 
good for an effective joint A ID-FAO' -action program in this 
field. 

— The AID contract program with Mississippi State University, 

for advice and technical assistance in seed program development, 
continues to operate effectively. 

— AID-funded programs for seed industry development are under- 
way in Tanzania, Cameroons, Thailand, Costa Rica, Ecuador, . 
and Honduras and soon will be initiated in Ghana, Rwanda, 
Chad, and the Central African Republic. 

— Discussions have been undertaken by AID with representatives 
of the U.S. commercial seed trade to encourage trade partici- 
pation in seed industry development activities. 



59 



Resolution XIII: International Fund for Agricultural Development (IFAD) 

Resolution XIII on IFAD was a major accomplishment of the World Food 
Conference. An OPEC initiative, it received widespread support due 
to the recognition of the importance of increasing agri cultural pro- 
duction among developing countries if the world's food problems are 
to be met. IFAD was proposed as a means of providing concessional 
financing for viable projects aimed at both increasing food production 
and improving the nutritional level in the poor food deficit countries. 
It was not conceived as a new institution duplicating existing bilateral 
and multilateral programs but as a central source of funding increased 
food production. Major emphasis was placed on its reliance on existing 
international financial institutions (IFls) to identify projects and 
administer the loans. 

IFAD has also become an important element in the North/South dialogue. 
At an early Session of the -Development Commission of the Conference 
on International Economic Cooperation (CIEC), unanimous agreement 
was reached on a statement urging IFAD's early establishment. A 
successful IFAD would have important implications for CIEC. Further, 
IFAD offers an important opportunity for cooperation between OECD and. 
OPEC countries to meet significant development needs of the world's 
poorer countries, and for OPEC countries to increase their share of 
the development finance burden. 

Resolution XIII outlined the general terms of reference which have 
guided the IFAD negotiating process. The most significant of these are: 

a) Voluntary funding from all developed countries and all developing 
countries in a position to do so. 

b) IFAD would be administered by a Governing Board consisting of 
representatives of the following categories of countries: 

i) contributing developed countries; 

ii) contributing developing countries; and 

iii) potential recipient countries. 



60 



Due account must be taken of the need for equitable representation 
among the three categories, and regional balance among the recipients 

c) IFAD disbursements should be carried out through existing 
international and regional institutions according to criteria and 
regulations established by the Governing Board. 

d) TFAD becomes operational when the U.N. Secretary General 
determines in consultation with representatives of countries who 
pledge funds to TFAD, that the funds are adequate. 



First Meeting of Interestpd Gnvprnmpnt.s 

U.N. General Assembly Resolution 3348 (XXIX) called on the Secretary 
General to convene a meeting of interested governments to work out 
the details of IFAD. This meeting, attended by 66 countries (including 
most OPEC and major OECD countries), was held in Geneva May 5-6 1975. 
Wftile mainly devoted to a general discussion of the need for IFAD, 
the meeting did have two concrete results: 

a) adoption of a Saudi proposal for a SDR $1 billion initial 
capitalization for IFAD; and 

b) establishment of an Ad Hoc Working Group with 27 countries 
(9 from each category) to make recommendations regarding funding, 
organization, operations and legal instruments needed to implement 
Resolution XIII. 

Other concepts discussed at this meeting which had an important in- 
fluence on later negotiations were the link between Board representa- 
tion of OECD and OPEC countries and relative contributions; and the 
need for a small IFAD professional staff with the IFIs, UNDP and 
FAO providing technical and administrative services. 



61 



Ad Hoc Working Group Meetings 

The Ad Hoc Working Group held two meetings (June 30-July 4, 1975 and 
September 22-27, 1976) and accomplished the following tasks: 

a) completion of the text of a draft Articles of Agreement on the 
overall structure of IFAD; 

b) agreement that IFAD should be a U.N. Specialized Agency with 
autonomy in policy formulation and operations; and 

c) adoption of a Saudi compromise proposal that the voting system 
would be based on the principle of equal division of voting power among 
the three categories of countries-, 

U.S. Support for IFAD 

Initially, the U.S. and other developed countries were not enthusiastic 
about the creation of a new institution which, at the onset, appeared 
duplicative of multilateral .and bilateral aid efforts already underway 
to meet additional needs. However, the U.S. and other developed countries 
agreed to support IFAD provided there were substantial OPEC contributions 
for IFAD and that the new institution, rather than creating a large 
staff, would use existing institutions for technical and supervisory 
operations. 

Secretary Kissinger announced substantial support for IFAD at the 
September 1975 UN Special Session, when he indicated that the U.S. 
was prepared to seek Congressional appropriation of a $200 million 
direct contribution to IFAD "...provided that others will add their 
support for a combined goal of at least $1 billion". In December 1975, 
the Congress authorized the $200 million contingent on IFAD's reaching 
the $1 billion target and equitable burden sharing amont the categories 
of contributors. 

Second Meeting of Interested Governments 

By the time of the Second Meeting of Interested Governments in Rome in 
October 27-November 1, 1975, considerable political momentum had been 
created toward the establishment of IFAD. This momentum overcame the 
lack of agreement on many of the major issues such as the voting system, 
operations and funding. 



62 



The meeting adopted a draft resolution for submission to the UN 
General Assembly. This was significant since its passage at the 
end of the Thirtieth Session of the General Assembly made it possible 
to call an IFAD Plenipotentiary Conference before the end of 1976. 



Third Meeting of Interested Governments 

When the Third Meeting of Interested Governments took place in Rome 
January 28-February 6, 1976, there was general recognition that prompt 
agreement was necessary on IFAD's institutional elements or the entire 
initiative could fat 1 . As a result, this important meeting was 
characterized by: 

a) Completion and approval of the draft Articles of Agreement. 
The Articles were highlighted by: 

i) Freedom for each category to determine the distribution 
of votes in that category and agreement on the decision 
making majorities required for IFAD decisions; 

ii) IFAD's use of international institutions for the 

administration of projects in its financing operations; 
and 

iii) Requirement that pledges total $1 billion before the 

Articles would be opened for signature; and ratification 
by countries contributing at least $750 million before 
the IFAD Agreement enters into force; 

b) Arrangements for convening the Plenipotentiary Conference; 

c) Preparation of a draft Resolution establishing an IFAD 
Preparatory Commission (Prepcom) . 



Plenipotentiary Conference 

The Plenipotentiary Conference was held in Rome June 10-12, 1976. 
While called to open the IFAD Agreement for signature, it failed to 
accomplish this goal since total pledges still fell short of the 
agreed $1 billion target. 



63 



When the OPEC Finance Ministers, committed $400 mill ion to IFAD from 
the $800 million OPEC Special Fund, this pledge was conditioned on 
a contribution by OECD countries of at least $600 million. At the 
same time, the U.S. and other OECD countries argued for an equitable 
burden sharing between OPEC and OECD countries. By the time of the 
Conference, total pledges in convertible currencies were $935 million, 
with $527 million from the OECD; $400 million from OPEC and $8 million 
from the non-oil producing LDCs. 

Rather than begin IFAD at a lower level , the Conference changed pro- 
visions of the Articles of Agreement so that if the target was not 
reached by September 30, 1976, the Prepcom would call a meeting of 
all prospective TFAD members before January 31, 1977 to determine 
whether the target should be modified. 

The June Conference also formalized the Prepcom, and charged it with 
the responsibility for preparing by-laws and regulations which will 
permit IFAD to begin operations soon after the Agreement enters into 
force . 



Prepcom Meetings' 

The Prepcom held its first session in Rome September 27-30, 1976 amid 
continuing concern over the funding issue. In addition to electing 
Saudi Ambassador to the FAO A.M. Sudeary as Prepcom adopted rules of 
procedure and established an interim secretariat. Also, the Prepcom 
decided that, assisted by the interim secretariat and a working 
committee of experts, it would begin work on developing the lending 
criteria and policies to govern TFAD operations. 

An important feature of the Prepcom was the September 30 report on the 
status of IFAD pledges. Significantly, Iran decided to increase its 
already substantial $104.75 million contribution to IFAD through the 
OPEC Special Fund by an additional $20 million. This statesmanlike 
act increased total OPEC pledges to $420 million. OECD pledges stood 
at $540.5 million and non-oil producing LDC pledges stood at $8.7" mill ion 
Thus total freely convertible pledges were $969.2 million, or still 
about $30 million short of the target. 



64 



Nevertheless, optimise concerning IFAD funding prompted the Prepcom 
to defer a decision to call a meeting of interested governments until 
the Second Session of the IFAD Prepcom scheduled to begin December 13. 

Despite the differences that have arisen between the three categories 
during the IT AD negotiations, the recent prepcom meeting showed con- 
siderable willingness on the part of all countries to cooperate to 
ensure the early establishment of IFAD. We are optimistic that the 
funding impasse can be overcome by a concerted effort by all categories 
Further we are encouraged that the spirit of cooperation which has 
characterized recent IFAD deliberations will continue, allowing IFAD 
to promptly begin its important tasfc of dealing with the serious food 
production and nutrition problems facing the developing world. 



65 



Resolution XIV: Reduction of Military Expenditures 



The Resolution calls on governments attending the Conference to take 
measures to reduce their military expenditures on behalf of develop- 
ment and to allocate increasing proportion of these sums to financing 
of food production in developing countries and to building up of 
food reserves for emergency cases. 

The U.S. and fifteen other nations stated that they would have ab- 
stained had the Conference voted on this Resolution. The U.S. has 
consistently taken the position that appropriate levels of military 
expenditures were outside the purview of the World Food Conference. 
Nevertheless, underdeveloped countries have continued to raise this 
question, most recently at the second World Food Council meeting. 



Resolution XV: Aid to Victims of Colonial Wars 



The Resolution calls on Director-General of FAO and Executive Director 
of WFP to intensify efforts to supply food aid to victims of "colonial 
wars" in a number of specified countries. It requests the Secretary- 
General to assist the national liberation movements in their national 
reconstruction, and calls on governments and non-governmental organiza- 
tions to provide assistance to compensate these countries for damages 
suffered through military conflict. 

Under this mandate, the UN/FAO World Food Program (WFP) has channeled 
over $20 million into projects and emergency assistance for Angola, 
Cape Verde Islands, Guinea-Bissau, Mozambique, Sao Tome and Principe. 
The WFP activities include feeding vulnerable groups and school children, 
resettlement of displaced persons and refugees, and food-for-work 
projects for agricultural development. The WFP has also given assistance 
to Portugal to assist 350,000 Portuguese nationals who were displaced 
from Africa. 



66 



Resolution XVI: Global Information and Early Warning System 
on Food and Agriculture 

The Resolution authorizes establishment of a Global Information and 
Early-Waming System on Foou and Agriculture to be operated and 
supervised by FAO. The Resolution requests all governments to par- 
ticipate fully in the System, by collecting statistical and other 
data on a wide range of factors affecting food and agricultural 
supplies, trade, etc., and requests governments, when necessary or 
desirable, to improve their own data system to facilitate the global 
System. The Resolution provides for wide-spread dissemination of 
these data, and requests the WMO (World Meteorological Organization) 
to provide, as its contribution to the System, data on a wide range 
of matters relating to climatic changes and conditions. 

The major responsibility for establishing the System is with FAO. 
Within the U.S. Government, the U.S. Department of Agricul ture is 
responsible for providing U.S. data as an input to the System and for 
general liaison and monitoring. The U.S. Agency for International 
Development (A.I.D.) is indirectly supporting the strengthening of 
this important System through its technical assistance program for 
developing countries. 

AID has a number of projects in developing countries that are aimed at 
strengthening the capability of those countries to do their own analyses 
of policy issues related to agriculture and rural development and to 
improve planning capability as a basis for more rational social and 
economic policy decisions. An integral part of these activities in- 
variably is the need for improved data, among other things, on food 
production and consumption. As these data series are improved, the 
Global System should benefit. 

Following the World Food Conference, AID decided to put increased 
emphasis on this problem. An "Expanded Program of Economic Analysis 
for Agricultural and Rural Sector Planning" was developed, with an 
approved funding level of*up to 5.3 million dollars for the Initial 
three years. This new Expanded Program provides a mechanism for 
enlisting the help of several U.S. universities which have particular 
strengths in related areas to work collaboratively with AID and with 
developing country institutions to strengthen the capacity of these 
countries in policy analysis and associated data systems regarding 
food and agriculture- 



67 



AID also ts assisting selected developing countries to use earth 
satellite and remote sensing technologies as a means of improving 
the countries 1 data on natural resources and food production. As 
these technologies are improved, the Agency will be prepared to 
give more emphasis to assisting the developing countries to take 
advantage of them. 

Resolution XVII: World Food Security ■ 

With world grain stocks at their lowest level in more than 20 years, 
the WFC recognized that priority should be given to the establishment 
of an international grain reserve. In addition to endorsing the FAO 
International Undertaking on World Food Security, the Conference 
suggested that major food producers, consumers and traders meet at 
an early date to accelerate the creation of an international system 
of nationally held reserves. 

The Conference. called on FAO to complete the operational and technical 
arrangements required for implementation of the undertaking on food 
security including practical examination of financial and administrative 
problems involved. 

In pursuance of this Resolution the United States invited representatives 
of nine countries and the European Community to convene in London in 
February 1975 to explore the feasibility of a reserve system. We have 
followed up this initiative in the framework of the International Wheat 
Council which has established a special working group to examine 
possibilities, including the establishment of international grain 
reserves, for a new agreement to succeed the International Wheat Agree- 
ment of 1971. This study of reserves and other provisions that might 
be included in a new agreement is continuing. 



68. 



Progress toward establishment of a reserve system has been slow 
because of the complex task of resolving differences among par- 
ticipating countries, especially over the trade aspects of a new 
agreement, and because of the inevitable close relationship with 
the broader Multilateral Trade Negotiations taking place under 
the GATT. 

The Committee on World Food Security held its first session in 
Rome in April 1976 to evaluate the food security situation and 
adequacy of world cereal stocks and to examine implementation of 
the International Undertaking on World Food Security, particularly 
with respect to special assistance to developing countries, national 
grain stocks policies and progress in the establishment of a Global 
Information and Early Warning System for Food and agriculture. The 
most recent meeting of Committee on Food Security was held in Rome, 
November 1976. 



69 



Resolution XVIII: An Improved Policy for Food Aid 

This resolution contains seven specific recommendations to governments 
and international organizations to improve food aid policies and pro- 
grams. The following statements, made in the context of U.S. Govern- 
ment activities, update the information contained in the November 6, 
1975 report to the Senate Subcommittee on Foreign Agricultural Policy: 

— Suggestion one calls for a minimum continuity of food aid 
levels to protect against price and production changes. 

As a member of the Food Aid Convention, the U.S. continues 
to provide a generous share of the grain pledged under 
this convention, i.e., 45% of the total 4.2 million tons 
pledged. 

— Suggestion two recommends that donor countries agree to 
10 million tons of grain of food aid per year and that 
they implement forward planning of food aid. During 

FY 1976 the major donors committed 9.2 million tons of 
. which about 50% was provided, by the United States. The 
U.S. is programming 5.6 million tons for FY 1977. We 
continue to urge other donors to increase their donations 
to help reach the 10 million ton level. 

. — Suggestion three called upon importing and exporting countries 
to meet after the World Food Conference to consider food aid 
needs for the most seriously affected countries. Within 
ten days following the Conference, this meeting was convened 
under the chairmanship of the Director General of the FAO. 
The U.S. at tended and participated active ly in encouraging 
other donors: to focus great er attention on the most seriou s 1 y 
affected nations. Wo reoyer , in the case_ o f U . S . all oc aj: io ns 
of_food_aid, while the present legislation may be almost too 
restrictive, at feast 75% of all food aid allocated under 
Title I of the PL 480 sales program, starting with FY 1976, 
must be to those countries with a per capita GNP of $300 p. a. 
or less. 



70 



Suggestion four urges donor countries to channel more 
food aid through the World Food Program, increase grant 
aid, consider the use of food aid repayments for nutrition 
programs and emergency relief and provide additional cash 
resources to purchase food from developing countries. U.S 
support to the world Food Program is evidenced by the fact 
that we have been over a number of years, the major donor 
of food to the WFP. This procedure continues — During 
the 1975-76 biennfum the U.S. contributed $140 million 
consisting of $97 million for commodities, $40 million 
for services and $3 million in cash. For the 1977-78 
bienniom the U.S. pledged $188 million, $155 million for 
commodities,. $30 million for services and $3 million in 
cash. Further, Sec. 201 (5) of P.L. 480 establishes a 
minimum of 1.3 million tons of agricultural commodities 
to be distributed each year on a grant basis of which at 
least one million tons is to be distributed through non 
profit voluntary agencies and the World Food Program. 

By law, food aid repayments are deposited back into the 
Commodity Credit Corporation accounts » are used to fund 
future P.L. 480 programs, and therefore cannot be pro- 
grammed for nutrition and emergency relief activities. 
However, the U.S. has other vehicles for implementing 
nutrition and emergency relief programs: 

** P.L. 480 Title IT commodities are used, in part 
to support maternity child feeding activities. 

Title II commodities are also used for emergency 
relief Droqrams, e.g., in FY 1976 the U.S. 
provided 5,440 MT of. blended fortified foods 
to Ethfopfa during a period of severe drought. 

** A new provision under Section 106 of P.L. 480 
permits a measure of "loan forgiveness" under 
Title T agreements if, inter alia, local currency 
proceeds from the sales of U.S. agricultural 
commodities are applied as additional increments 
to agreed purposes; efforts to improve and expand 
national nutrition programs would, of course, be 
given priority consideration. 






71 



** Nutrition activities are also funded through the 
regular foreign assistance programs. A detailed 
description is- covered under Resolution V 
Policies and programmes to improve nutrition . 

** Specific funds are appropriated under the Foreign 
Assistance program for Contingencies and Disaster 
Relief Assistance. 

Suggestion five calls for the reorganization of the Inter- 
governmental Committee (IGC) .of the World Food Program to 
better accommodate the food aid coordination functions 
assigned to it by the World Food Conference. This was 
accomplished and the new "Committee on Food Aid" (CFA) 
held its first session in Rome during April 26 - May 7, 
1976; the second meeting is scheduled for November 15 - 27, 
1976. 

Suggestion six recommends that governments where possible 
earmark, stocks or funds for meeting international emergency 
requirements, and that guidelines be developed to implement 
this aspect of the FAO's proposed international undertaking 
on World Food Security. The United Nations General Assembly 
suggested a target of not less than 500,000 tons. This 
issue was debated extensively during the first session of 
the CFA and while there was consensus on the merits of such 
a reserye, further discussion on implementation will be an 
agenda item during the November 1976 meeting. It should be 
noted that the U.S. does not plan to contribute to the 
Emergency Reserve, because: 

** the main value of the Emergency Reserve lies in 
making available additional food aid resources; 
a U.S. contribution could mean a corresponding 
reduction in regular program contributions to the 
WP or in U.S. bilateral food aid assistance. 

**_ the United States strongly supports the economic 
and social development role of the WP and prefers 
to pledge its multilateral food aid to that purpose. 



72 



** the United States expects to continue to be the 
largest donor of emergency-food aid, both on a 
bilateral basis and, as need arise, in response 
to WFP requests. 

Suggestion seven recommends that some emergency stocks 
be voluntarily placed at the disposal of the World Food 
Program in order to increase its ability to assist in 
emergency situations. The U.S. position remains unchanged, 
i.e., in view of the magnitude of our own bilateral food 
aid programs (-including emergency food aid activities) 
and in view of our already substantial contribution to 
World Food Program project aid, it has not been necessary 
for the U.S. to make emergency food stocks available to 
the World Food Program. 

In addition, other donors such as Canada provide substantial 
amounts of additional food aid to the World Food Program 
and therefore, emergency stock donations from the U.S. are 
not necessary. 



73 



Resolution XIX: International Trade, Stabilization and Agricultural 
Adjustment" 

This Resolution seeks to promote world food availability through 
measures which will liberalize world trade in agricultural commodities, 
encourage exports of agricultural commodities from developing countries, 
and establish an overall integrated program for commodities to consider 
new approaches to commodity problems. Nineteen separate recommenda- 
tions for actions are addressed to "all", or "developed" or "developing" 
_cojjntries, to international organizations generally, and to specific 
international bodies concerned with trade and/or development, especially 
UNCTAD, FAO and World Food Program urging them to take various measures 
and adopt policies which will achieve the objectives of greater liberali- 
zation of trade fn favor of developing countries. 

The Tokyo Round of multilateral trade negotiations, under GATT auspices, 
is continuing its consideration of trade liberalization measures for 
agricultural products of interest to developing country producers, 
particularly through the deliberations of its groups devoted to Tropical 
Products, Agriculture, and non-tariff measures to trade. The negotiating 
phase is expected to commence early in 1977. 

The Commodities Resolution adopted at UNCTAD IV in May sets up two 
series of international consultations: (1) producer/ consumer discussions 
on 18 major commodities of interest to developing countries and (2) 
preliminary discussions leading to a negotiating conference on a Common 
Fund no later than March 1977. The U.S. will participate in the 
discussion on these 18 individual commodities based on our understanding 
of the UNCTAD Resolution, as stated for the record in Nairobi; namely, 
(1) that these meetings are to determine— without commitment— measures 
which may be appropriate to these products and (2) that actual negotia- 
tions on commodity arrangements will be held as and when required by 
the results of these meetings. 

On January 1, 1976, the U.S. system of generalized tariff preferences 
came into effect. These preferences cover over 2700 products whose 
trade value in 1975 was $2.5 billion-. Moreover, as evidence of the 
growth potential of the system, the covered products compete directly 
with $25 billion of goods comprising 1/4 of total U.S. imports. 135 
countries and dependent territories are eligible to benefit from the 
system. 



74 



Resolution X.X: Payment of Expenses to Representatives of National 
Liberation Movements 

This Resolution requests the General Assembly to defray all travel 
costs and related expenses of representatives of the national 
liberation movement who have participated in the World Food Conference 

This Resolution was adopted by the General Assembly in accordance 
with the procedure established for earlier UN meetings. Actual pay- 
ment practice varies from meeting to meeting. 

Resolution XXI: Expression of Thanks 

This Resolution expresses its deep appreciation to the President of 
the Republic of Italy and to all the people of the Republic of Italy 
for hosting the World Food Conference. 









75 
Resolution XXII: Follow-UP Action 



In addition to the substantive resolutions addressed to 
member governments, to existing organizations within the 
UN System and to Non-Governmental organizations, the 
Conference, in Resolution XXII, recommended establishment 
of several new mechanisms designed to ensure appropriate 
follow-up of the Conference resolutions. The major 
new bodies established Are the World Food Council, the 
Consultative Group on Food Production and Investment 
(CCFPI) and the International Fund for Agricultural 
Development (IFAD). The latter is discussed under 
Resolution XIII. 

Wo rld F ood Council 

The World Food Council composed of 36 member countries was 
established to meet at the Ministerial level. Its head- 
quarters is in Rome. Its Executive Director appointed by 
the UN Secretary General is John A. Hannah, former Administrator 
of the United States Agency for International Development. 
The function of the Council is to review periodically the 
world food situation and propose remedies to governments 
and international organizations for resolving problems and 
improving agricultural policies. 

The World Food Council has met twice at the Ministerial 
level to provide overall coordination and follow-up of 
policies concerning food production, nutrition, food 
security, trade and aid. The Council has made progress in 
establishing its operating procedures and has succeeded in 
narrowing the focus of issues for consideration to a level 
that is manageable. The next meeting of the World Food 
Council is scheduled for June, 1 9"'7 . It will be preceded 
by preparatory work among delegations representing member 
countries. 

Cons ul t ative L i roup for Food Production and Invest ment (CbFP I ) 

The Conference requested the World Bank, FAO and UNDP to 
organize this Group, which is composed of bilateral and 
multilateral donors and representatives of developing 
countries. The CGPFI is jointly staffed by the World Bank. 






76 



FAO and UNDP. Its functions are to encourage a larger 
flow of external resources to food production, and to 
ensure more effective use of available resources, to 
improve coordination of food production activities of 
multilateral and bilateral donors. 

The C6FPI has met three times under the chairmanship 
of Ambassador Edward Martin of the United States. At 
its most recent meeting, held in Manila in September 1976, the 
group agreed to concentrate during the next year on the 
preparation and review of country food plans. This process 
is Intended to improve the effectiveness of the flow of 
resources to developing countries for food production. 
The CGFPI's sponsoring organizations will review the results 
of this work to determine whether the Group should be con- 
tinued longer than one additional year. 



International Group for Agricultural Development in 
Latin .America _and the Caribbean (IG AD) 

Although not the direct result of a World Food Conference 
Resolution, this Group's establishment is a reflection of 
the" Worldwide concern over the need for increased food 
production and effective mechanisms to bring this about. 

In May, 1975 the Inter- American Development Bank (IDB) 
Board endorsed the establishment of the International 
Group for Agricultural Development in Latin America and 
the Caribbean (IGAD). This consultative group was created 
to identify major constraints to increasing agricultural 
production, promoting rural' development and improving 
nutrition in Latin America, and to find ways to combine 
recipient and donor resources to overcome these constraints. 
The Group will seek to promote and coordinate a greater flow 
of donors' technical and financial resources for food 
production and rural development. 

IGAD is composed of governmental, inter-governmental, 
and private organizations in Latin America. The major 
donors 1n the hemisphere, including the IDB, the World Bank 
and A. I.D., among others, have agreed to participate in the 
Group. Latin American nations which are members of the IDB 
have also been invited to participate. A.I.D. proposes to 
provide roughly $200,000 over a three year period (1976-78) 
to support the Secretariat of the Group. This represents 
about 18 percent of the estimated budget. 



UNIVERSITY OF FLORIDA 



77 



3 12b2 OMEMfl 2T75 



The ln^^aj"^reeting_of the Group was hel d in Cancun , 
Mexicoln May, "1976. There Latin American Governments 
and donors agreed on general lines of action, including 
activities 1) to overcome the lack of trained manpower 
for project development and implementation, 2) to improve 
the linkages from international research centers through 
national centers and extension services, to the farmers, 
and 3) to reduce post harvest losses. Currently, the 
Secretariat is developing more specific proposals. IGAD 
will complement the Consultative Group on Food Production 
and Investment (CGPFI) which will focus primarily on other 
regions. 



O